Recovered copper futures lifted spot trades

SHANGHAI, Mar 25 (SMM) – Transactions of spot copper in Shanghai revived on the morning of Wednesday March 25 as the copper futures continued to regain losses from earlier this week and this improved market sentiment. 

Trading activities were brisk in early session this morning with downstream consumer buying on relatively low prices and traders procuring for the delivery of long-term contracts. This saw spot discounts narrowing from 50 yuan/mt to 30 yuan/mt, against the SHFE April contract, for standard-quality copper, and to 20 yuan/mt for high-grade copper. Transactions cooled near noon when the futures copper recorded a fast rebound to close to 39,000 yuan/mt. 

At noon on Wednesday, discounts of standard-grade copper stood at 30 yuan/mt with that of high-grade copper at 20-10 yuan/mt. Discounts of hydro-copper reduced to 60 yuan/mt. 

The SHFE 2004 contract extended increase from the prior day and closed the morning trading session 2.1% higher at 38,830 yuan/mt. 

As of noon on March 25, trades of high-grade copper occurred at 38,620-38,950 yuan/mt with standard-quality copper trading at 38,600-38,940 yuan/mt.