During mid-April, copper rod markets across Asia were shaped by a tightening of available raw materials alongside a surge in demand from power infrastructure build-out and the renewable energy segment. These factors jointly influenced pricing trajectories and guided production choices in major consuming and producing nations.

Key Takeaways

• Vietnam experienced a notable uptick in copper rod transactions in mid-April, spurred by     ongoing expansions in its power grid and a dynamic renewable energy rollout.
• China’s market volatility persists as raw material shortages and tariff pressures continue to destabilize secondary copper rod supply and pricing.

Vietnam

In the week ending on April 18, Vietnam's copper rod market experienced dynamic momentum with a sharp rise in demand. Consumption rose significantly from power grid upgrades and emerging solar installations. This dual demand stream drove order books higher, resulting in a rise in copper rod prices.

Demand from the power sector surged, with The Southern Power Corporation (EVNSPC) playing a central role. EVNSPC energized six new 110 kV power grid circuits across several provinces, with the majority of projects in operation by mid-April. Cumulatively, EVNSPC has commissioned 35 such high-voltage projects since January, underscoring the government’s commitment to reinforcing regional electrical infrastructure and meeting escalating industrial and residential power requirements.

Concurrently, the government's focus on the implementation of renewables especially solar in domestic and commercial use has also resulted in higher demand for copper rod. The government has started to offer incentives, such as feed-in tariffs and fee exemptions, to encourage the development of solar energy projects.  Deputy Director of Electricity and Renewable Energy Authority Bui Quoc Hung’s optimistic commentary on forthcoming solar policies suggests significant headroom for expansion, further bolstering the consumption of copper rod.

Nevertheless, supply-side headwinds surfaced as the Intra-Asia Container Freight Index (IACI) climbed by roughly 11 percent, driving up logistics expenses and feeding through to domestic copper rod prices. By the third week of April, local quotes for copper rod had risen by about 2 percent. With manufacturing constraints persisting and downstream industries continuing to lift volume requirements, upward pressure on prices seems likely to carry into the coming weeks.

China

At the outset of the reporting week, many Chinese secondary copper rod producers grew reluctant to secure fresh scrap volumes at prevailing market rates, fearing margin erosion amid heightened input costs. As a result, several operations temporarily idled smelting and drawing lines, preferring to burn through existing stockpiles instead—sending operating rates to multi-week lows.

This inventory was drawdown material: secondary copper rod warehouses saw a reduction of some 1,050 metric tons, settling at around 1,750 metric tons by weekend. In parallel, domestic copper rod prices climbed approximately 2 percent in the week ending April 18, a move underpinned by persistently negative treatment and refining charges for copper concentrate that signal tight upstream supply.

Looking ahead to the lead-up to China’s May Day holiday, producers have begun aggressive procurement of scrap copper to secure buffer stock. With potential Q2 maintenance shutdowns at major manufacturers, full restoration of previous operating rates remains a distant prospect and may lead to a rise in copper rod prices.