LME Copper to Move in Tight Range (2017-6-2)

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, SHFE copper prices are expected to rise intraday and remain at a relatively high level. Coupled with the futures contract rollover, trading activity is likely to be muted, reflecting that the current price level is significantly suppressing real demand. After the rollover, the market will officially price around the 2607 contract, and close attention should be paid to the outflow of unmatched warrants. However, open interest for the SHFE copper 2606 contract currently stands at approximately 5,500 lots, indicating limited delivery participation. The concentrated release of warrants is therefore expected to exert relatively limited additional pressure on spot discounts. Supported by delivery-related dynamics, Shanghai spot copper discounts did not see a sharp decline. But if copper prices remain at current highs and demand fails to improve effectively, spot premiums may come under downward pressure.

[SMM Mercado de cátodos de cobre del norte de China] Los precios intradía del cobre repuntaron y los nuevos pedidos downstream mostraron una desaceleración. Sin embargo, a medida que los semielaborados de cobre downstream cumplieron gradualmente los pedidos realizados tras la debilidad previa de los precios del cobre, las empresas retiraron mercancía hoy para reponer materia prima de cátodos de cobre.