Proportion of scrap copper to total raw materials consumed by Chinese copper plate, sheet, strip and foil producers fell to 15.41% in March, SMM’s survey of 21 such fabricators showed.

Copper prices plunged in March, narrowing the price gap between bare bright and refined copper to about 800 yuan a tonne, down 368 yuan from February’s average, which left scrap copper unattractive to copper fabricators.

Customs statistics revealed China’s scrap copper imports dropped 16.5% in the first two months of this year, leaving tight supply in scrap market. As a result, some copper plate, sheet, strip and foil producers turned to refined copper instead.

Ratio of raw material stocks to finished goods at these producers fell to 24.49% in March.

Producers saw a noticeable increase in orders after copper prices stabilized, allowing them to ramp up production and increase raw material purchases. As such, the amount of raw material stocks did rise in March. Notably, although these copper fabricators restocked when copper prices were between 44,000-45,000 yuan per tonne, most investors were still far from optimistic toward future copper prices. Some fabricators even sold refined copper in physical markets given high spot premiums.