Spot Copper Price Movement (2012-10-19)

SHANGHAI, Oct. 19 (SMM) – Spot copper discounts were negative RMB 60-240/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 58,580-58,780/mt, and RMB 58,680-59,020/mt for high-quality copper. As SHFE copper prices started flat and fluctuated, spot copper discounts stabilized between negative RMB 100-240/mt, and merely discounts for the “Guixi” brand quoted negative RMB 80/mt but received little response from markets. At 11 am, SHFE copper prices were dragged down below RMB 59,000/mt owing to the falling Chinese A-shares, so some spot copper cargo-holders narrowed discounts to negative RMB 60-180/mt, but downstream producers awaited lower price levels. Near the midday, forward SHFE copper contracts gained falling momentum and compelled hedged traders to take profit-taking. Spot copper discounts thus remained between negative RMB 80-220/mt, still failing to entice market buyers. Spot market activity was not seen to improve as a result.