Copper:

The price of recycled copper in Foshan today continues to fall, and the trend of market was relatively weak after festival. What exerts pressure on the spot market of copper is continuous shock and decline of its price. However, the downstream manufactures of the spot copper market have not resumed production lead to weak appetite of purchasing. Moreover, as the quantity of materials prepared before the festival is limited, it is also limited for the impact on the inventory. And, the majority traders are still on vocation, more are cautious and wait-and-see, and have not yet participated in the transaction. According to the experiences of previous years, February is the weakest month of consumption in a year, and downstream manufactures and factories generally start to work normally after the Lantern Festival. Domestic copper is expected to continue to accumulate in the near future, which may exert pressure on prices. Due to multiple factors such as environmental protection and import ban, the import of copper scrap decreased by 32.2% year on year last year, and the supply of copper scrap expected to tighten further this year.

Aluminum: The price of aluminum in Foshan today suspended the downward trend, becoming stability and slightly up. On the whole, the trend of aluminum price is relatively weak after festival, which is mainly due to the pressure of significant increase in social inventory. In the short term, the price of raw material is not strong, which will weaken the support of aluminum price from productions costs. As most downstream enterprises have not started to work, the performance of demand is still flat on the all, which is difficult to good aluminum prices.

Zinc：The price of Zinc in Foshan today continues to fall, and the successive declines after the festival had a greater impact on the market trading mentality. However, the overall impact is expected to be limited due to the small size of material preparation before the festival. The industry is not pessimistic about the post-holiday market that enterprises will start construction after the Spring Festival holiday, which means the downstream of zinc market will usher in the seasonal start season, demand is expected to pick up, or good zinc prices.

Stainless steel: The price of scrap stainless steel in Foshan today slightly down in further, mainly due to the pressure of nickel callback in Shanghai. While the production of domestic stainless steel decreased during the Spring Festival, the downstream is still in the “Vacuum period” of consumption, it is a high probability of inventory increases seasonally. The import pressure of stainless steel in Indonesia may increase in the later period, and the pressure of stainless steel midline is still large. (Source: Lingtong Metal Information)