Copper Scrap Markets Faced Significant Downturns in Supply and Demand

SEATTLE (Scrap Monster): The virtual conference of experts organized by the International Scrap Recycling Institute (ISRI) noted that copper scrap markets faced significant downturns in supply and demand owing to crisis situation created by Covid-19 pandemic.

According to speakers, copper witnessed substantially lower demand from automotive industry and supply chains. The recent research carried out by John Dunham and Associates on behalf of ISRI had pointed out that the pandemic has resulted in job loss of around 29,000 in the U.S. non-ferrous scrap recycling industry.

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The demand for scrap is likely to show improvements in June and July as many mills return to normal operations following Covid-19 related shutdowns. The overall export market has dropped by over 15%. The Chinese scrap purchase, which has continued to remain aggressive till date, is likely to be impacted following new scrap category classifications that are due to come into effect starting July 1st this year.

A recent survey of traders had hinted at a global copper surplus, mainly on account of greater demand drawdown. According to traders’ estimates, the surplus is anticipated between 20,000 tonnes and 570,000 tonnes.

The conference noted that copper scrap prices has registered over 21% decline during the one-year period from April 2019 and April 2020.