Shanghai Spot Copper Price Movement on Feb. 2

SMM Insight 01:17:57PM Feb 02, 2012 Source:SMM

SHANGHAI, Feb. 2 (SMM) –Shanghai spot copper discounts were reported between negative RMB 330-180/mt in the morning business. Traded prices for standard-quality copper were between RMB 58,700-58,900/mt, and RMB 58,800-59,100/mt for high-quality copper. SHFE copper prices continued to move lower after a high open, but cargo-holders were reluctant to trade at prevailing discounts. Owing to the falling SHFE/LME copper price ratio, copper importers were unwilling to move goods, while domestic suppliers, especially standard-quality copper suppliers, also refused to offer big discounts given no cash flow pressures. In this context, spot copper supply decreased, and copper discounts narrowed slightly, which, though, dampened speculative activities. As SHFE copper prices just fell slightly, downstream producers stuck to the sidelines, resulting in limited market transactions. 
 

Shanghai Spot Copper Price Movement on Feb. 2

SMM Insight 01:17:57PM Feb 02, 2012 Source:SMM

SHANGHAI, Feb. 2 (SMM) –Shanghai spot copper discounts were reported between negative RMB 330-180/mt in the morning business. Traded prices for standard-quality copper were between RMB 58,700-58,900/mt, and RMB 58,800-59,100/mt for high-quality copper. SHFE copper prices continued to move lower after a high open, but cargo-holders were reluctant to trade at prevailing discounts. Owing to the falling SHFE/LME copper price ratio, copper importers were unwilling to move goods, while domestic suppliers, especially standard-quality copper suppliers, also refused to offer big discounts given no cash flow pressures. In this context, spot copper supply decreased, and copper discounts narrowed slightly, which, though, dampened speculative activities. As SHFE copper prices just fell slightly, downstream producers stuck to the sidelines, resulting in limited market transactions.