Prices of Deliverable Standard-Quality Copper Rose On Tight Supply

SHANGHAI, Aug 24 (SMM) - Today, spot premiums of #1 copper cathode moved between 340-430 yuan/mt over the SHFE 2309 copper contract, and the average premium was 385 yuan/mt, up 20 yuan/mt from yesterday. The traded prices of standard-quality copper were 69610~69720 yuan/mt, and the high-quality copper was traded at 69670~69790 yuan/mt. SHFE 2309 copper contract prices rose from 69,400 yuan/mt at the beginning of the morning session to 69,250 yuan/mt, and returned to the range of 69,280~69,380 yuan/mt after 10:00 am, closing at 69,350 yuan/mt, up 290 yuan/mt. The import loss expanded to 500 yuan/mt against the SHFE front-month copper contract, and the backwardation of SHFE front-month copper contract against the SHFE next-month contract moved at 180~200 yuan/mt.

Spot premiums moved up compared with yesterday. In the morning, premiums of mainstream standard-quality copper were 350~360 yuan/mt, and those of high-quality copper stood at 400~430 yuan/mt amid tight supply. Premiums of hydro-copper were around 260 yuan/mt, and premiums of non-registered cargoes were 100~200 yuan/mt. Entering the mainstream trading period, the mainstream standard-quality copper premiums were 340~360 yuan/mt, and the downstream buyers favoured non-registered sources. In the second trading session, several CCC-P sellers lowered their prices in order to generate cash. The supply of high-quality copper was tight and the transaction was brisk.

The quotations against the next-month invoices increased within the day, but most of the traders and the downstream buyers mainly purchased cargoes with the front-month invoices.