Copper Scrap Prices

Copper Scrap

Copper- The Red Metal

Copper is extensively used for a variety of decorative and functional purposes. The ductility, malleability and electrical and thermal conductivity of the metal makes it an ideal choice for use in production of wide range of electrical and telecommunications devices. The corrosion resistant nature of copper contributes to its extensive use in roofing and plumbing applications. The transition to green economy is expected to further boost copper consumption.

Recycled Copper- An Ideal Substitute

The uniformity in quality of recycled copper, makes it an appropriate substitute for primary metal. According to Copper Development Association, the premium-grade copper scrap has at least 95% of the value of the primary metal.

Benefits of Copper Scrap

Copper can be repeatedly recycled without affecting its performance. In addition, recycled copper requires 85% less energy than primary copper production. It helps to reduce consumption of electricity and keeps millions of tonnes of carbon dioxide out of the atmosphere.

Copper Recovery Process

The secondary copper recovery process is divided into four separate operations-scrap pretreatment, smelting, alloying and casting. Pretreatment prepares the scrap for smelting through a process of cleaning and consolidation. The process by which scrap is heated and treated for separation and purification is called smelting. Alloying involves addition of one or more metals to achieve desired quality. Casting is the final step in the recovery process.

Classification of Copper Scrap

Scrap dealers classify copper scrap accepted in many forms based on its use, appearance, source and composition. On a broad basis, the classification can be confined to two heads-old scrap and new scrap. Old scrap, otherwise referred to as post-consumer scrap, is that scrap obtained from post-consumer products. The examples of old scrap include copper wires, copper tubings, roofing copper and copper pipes. Meantime, new scrap is that generated during fabrication and manufacturing process.

Uses of New and Old scrap

Incidentally, new scrap is regarded as high-grade material when compared to old scrap.As electrical applications demand high-grade material, premium-quality new copper scrap could be used as replacement in the event of non-availability of newly mined copper. On the other hand, non-electrical applications widely use old scrap.

Global Recycled Copper Market

Recycled copper accounts for a major portion of the overall global copper demand. As per estimates provided by the International Copper Association, copper scrap contributes approximately one-third of the copper supply in the U.S. Meantime, recycled copper accounts for nearly half of the total copper use in the European countries.

Key Market Players

China dwarfs all other world countries in copper smelting production. The average secondary copper production by the country has averaged at around 1.5 million tonnes over the past ten years or so. Also, secondary metal contributes almost 30% of the country’s total copper consumption. Also, the country has been the primary importer of copper scrap. The stringent guidelines by the Chinese administration on import of scrap materials has turned other Asian countries such as Indonesia and Malaysia into major recycling hubs.

The U.S. Market

The U.S. has been a key exporter of low-grade copper scrap due to lack of domestic capacity to treat them. The country exported around 920,000 tonnes of copper in gross weight during the previous year. Of late, the country has been taking necessary actions to address this missing link in the copper supply chain.

Scrap Copper Market Outlook

The very fact that copper is a key ingredient in several industries, coupled with its undersupply, makes the prospects of scrap copper extremely rosy. Reduced mine production of the primary metal or potential disruptions in supply chains will boost the demand for scrap copper. However, the copper scrap sector does not seem completely devoid of challenges. These challenges faced by the sector can only be addressed through increased capital investment in modern equipment and technology.

The global copper scrap supply from smelter and refinery feed as well as directly melted scrap is forecast to reach 11.7 million tonnes by 2030.