Core Viewpoint - The waste copper market experienced significant price fluctuations over a week, driven by futures market dynamics, supply chain adjustments, and policy changes [2][6]. Group 1: Price Fluctuations - On July 10, the price of bright copper dropped by 200 yuan/ton to 72,200 yuan/ton, with a nationwide average falling to 65,000 yuan/ton, marking a single-day decline of 600 yuan, the lowest of the year [2]. - The futures market saw the main copper contract (CU888) drop over 500 yuan/ton from July 9 to 10, leading to panic selling in the waste copper market [2]. - By July 16, the main copper contract stabilized at 78,020 yuan/ton, prompting a recovery in waste copper prices, with the national average rising to 70,630 yuan/ton [2]. Group 2: Regional Price Competition - As of July 17, the price of bright copper wire in Nanyang and Xi'an reached 70,690 yuan/ton, only 10 yuan lower than Shanghai, with a previous price difference of 150 yuan a month prior [4]. - The transportation time for waste copper from North China to East China decreased from 5 days to 3 days, reducing transportation costs by 30 yuan/ton [4]. - The competition reshaped price tiers, with Nanyang and Xi'an in the top tier (70,680-70,690 yuan/ton) due to strong demand from local motor manufacturing [5]. Group 3: Quality Differentiation - On July 17, the average price of bright copper wire was 70,645 yuan/ton, while crushed yellow brass was priced at 68,230 yuan/ton, showing a price difference of 2,415 yuan [5]. - High-purity waste copper, such as bright copper wire, is increasingly viewed as "hard currency" in the market due to its critical role in battery-grade copper foil production [5]. Group 4: Market Dynamics and Policy Impact - The relationship between futures and waste copper prices is defined as: waste copper price = futures copper price × 90% - processing fee ± regional premiums [6]. - The implementation of new recycling regulations in Shanghai benefits compliant companies through a VAT refund policy, saving 420 yuan per ton of waste copper [6]. - Technological advancements, such as the use of laser sorting machines, have significantly improved waste copper recovery efficiency and purity, further driving up prices for high-grade copper [6].