SHANGHAI, Feb 24 (SMM) – Transactions and enquiries in the spot copper market in Shanghai improved from a week ago on the morning of Monday February 24 as downstream buyers stepped up purchases after the copper futures slipped on lingering concerns about an escalation in the coronavirus. Chinese government urges the orderly resumption of industrial production amid the virus outbreak, and this also accounted for the improvement in downstream demand.
Discounts of spot cargoes narrowed significantly from last week, to 150-130 yuan/mt, against the SHFE March contract, in early trades this morning. This was before sellers added discounts to boost trades. As of noon on Monday, trades of standard-quality copper mostly occurred at discounts of 170 yuan/mt, with discounts of high-quality copper at 160-150 yuan/mt. Discounts of hydro-copper shrank to 250-230 yuan/mt.
SMM expects sellers to continue to hold offers firm before traders finish purchases for the fulfilment of monthly contracts.
On February 24, the SHFE 2003 contract extended the decline from last Friday and ended the morning trading session 0.61% lower at 45,780 yuan/mt.
At noon on February 24, high-grade copper traded at 45,520-45,570 yuan/mt and standard-quality copper traded at 45,500-45,550 yuan/mt.
