July and August are traditionally considered the off-season for copper consumption, yet the scrap copper market has been experiencing an exceptionally active trading period. A visit to a recycling resource trading hub in Taizhou, Zhejiang Province revealed that scrap copper has become a highly sought-after commodity in recent months.

One merchant at the trading hub reported price increases of at least 20,000 to 30,000 yuan per ton. Several copper smelters have proactively approached them to secure supply, and the merchant has been continuously restocking. Expressing optimism about current market conditions, the merchant noted that thousands of tons of material remain in transit, with purchase orders already secured upon delivery.

A purchasing agent indicated that rising market demand has boosted their procurement volume by 10% to 20% compared to previous levels. The agent stated they now spend nearly every day at the market, often continuing transactions until closing time.

Under standard industry procedures, scrap metal must go through unpacking, sorting, and grading before pricing. However, buyers are no longer willing to wait. According to market manager Pang Xiaojie, demand for scrap copper has increased two to three times in recent months, with many shipments being pre-booked by customers even before unpacking. High-quality scrap copper is now selling for over 90,000 yuan per ton, with prices reaching 100,000 yuan per ton not considered unusual.

A local recycled copper processing company in Taizhou is operating at full capacity. Ying Fanyang, Secretary of the Board at Zhejiang Judong Co., Ltd., explained that the company has been continuously expanding production capacity since last year. "Our recycled copper production capacity was 60,000 to 70,000 tons last year, with a target of 100,000 tons this year. We are essentially operating at full capacity," Ying stated.

Typically, rising prices suppress market demand, but companies on the front lines are experiencing persistent supply shortages. According to Ying, even during the traditional off-season of July and August, the company's order book is already scheduled one month in advance.

The strong performance of scrap and recycled copper reflects the broader copper price upcycle. Zhu Yongbin, General Manager of the Shanghai Nonferrous Metals Exchange Center, revealed that the center's copper spot price index rose 31% in the first half of this year. "When copper prices rise, the economic advantages of scrap copper become more apparent, and many companies will increase their use of scrap copper during these periods," Zhu explained.

Market data shows that from February to August, copper futures on the New York Mercantile Exchange and the London Metal Exchange rose 52% and 58%, respectively. Industry participants attribute the current high copper prices primarily to supply-side factors.

Ying Fanyang noted that overseas copper mine output has contracted, and despite higher copper prices, the actual supply available for procurement has not increased accordingly. Zhu Yongbin added that rising raw material costs have led many smelters to schedule maintenance or control production pace, significantly slowing copper supply growth.

On the demand side, incremental demand from AI, power grid, and renewable energy infrastructure continues to expand. Zhu pointed out that copper's excellent electrical and thermal conductivity makes it essential for both power grid and AI computing infrastructure. Ying also observed that surging demand from computing centers and power construction sectors has kept overall demand robust.

September and October mark the traditional "golden September and silver October" peak season for domestic copper consumption. Whether high copper prices driven by supply-demand mismatches can stabilize remains uncertain. Xiao Chuankang, copper industry analyst at Shanghai Ganglian, stated that the sharp rise in copper prices has placed significant operational pressure on primary and secondary copper processors. Downstream demand transmission has not been smooth, and the momentum behind this price surge may already be in its middle-to-late stages.

Looking at the medium-to-long term, two core narratives are competing: on one hand, the pace of global copper mine resumption and new capacity commissioning, as the market continues to face structural ore shortages; on the other hand, the pace of demand realization from emerging sectors such as AI.

The incremental copper demand from AI computing infrastructure remains a key market focus. According to Xiao, while computing infrastructure projects have begun implementation, the actual rollout pace lags behind market expectations. When the industry will enter a phase of rapid development remains to be seen.