Cautious buyers on higher futures prices depress spot copper trades

SHANGHAI, Jul 19 (SMM) – Spot copper trades thinned on the morning of Friday July 19 in Shanghai as rising futures prices kept speculative buyers cautious and as downstream consumption failed to pick up. 

Cash-in inclination drove spot sellers to offer discounts for standard-quality copper, the first time since July. At noon of July 19, standard-grade copper was offered at a discount of 20 yuan/mt, over the SHFE front-month August contract, with further bargaining room in negotiations. 

Offers of high-quality copper also weakened to a premium of 40 yuan/mt at noon, compared with a premium of 70 yuan/mt in early trades. Discounts of hydro-copper expanded to 60-30 yuan/mt at noon. 

On Friday July 19, the SHFE August contract rallied on a lower US dollar and ended the morning trading session at 47,650 yuan/mt, up 920 yuan/mt from that time on July 18.

At noon on Friday July 19, high-grade copper traded at 47,600-47,780 yuan/mt and standard-quality copper traded at 47,540-47,740 yuan/mt.