Copper prices drop rapidly; today's refined copper rod market trading sentiment weakens

Affected by the rapid drop in copper prices, the refined copper rod market saw significant changes this morning. Unlike the previous period of price pullbacks, when trading activity warmed up and rebounded, today many refined copper rod manufacturers and traders have paused trading or reduced their trading. Although some downstream buyers are still actively making inquiries in search of opportunities to procure goods, with reduced shipments from sellers, it has been difficult to push transactions forward. Some companies have begun quoting higher processing fees, which in turn reflects the market being in a state of weakening trading sentiment.

The main reasons shipments have decreased are:
First, there were more orders earlier; some companies are waiting on orders to be delivered, and their production scheduling timelines are longer, so they have no intention of taking on more orders.
Second, against the backdrop of rapid price declines, earlier orders have shifted from low-price orders to phase high-price orders, increasing execution pressure on orders.
Third, under the pressure of current price fluctuations and the sheer number of orders, market funding pressure has increased, and liquidity risk has risen.

Under the combined impact of multiple pressures, today’s market is characterized by active inquiries from downstream but cautious sellers, as it enters a risk-control stage. (My Steel Network)