The scrap-to-virgin price spread has significantly narrowed, leading to increased costs for recycled copper raw materials.

This week, the difference between refined and scrap prices significantly narrowed, dropping from 1,230 yuan/ton to 475 yuan/ton. This is mainly due to the tax-included recycled copper raw material’s invoice points being 9.3%-9.5% before the Spring Festival, rising to 9.8%-10.3% by early March, leading to increased tax costs for recycled copper raw materials. At the same time, to ensure compliant operations and normal production and sales, waste recycling companies have increased their procurement of tax-included recycled copper raw materials, resulting in a supply shortage in the market. These factors collectively kept the market price of tax-included recycled copper raw materials firm, further driving the continuous narrowing of the refined-to-scrap price gap. (SMM)