Spot Copper Price Movement (2013-2-18)

SHANGHAI, Feb. 18 (SMM) – Shanghai spot copper premiums were RMB 0-100/mt in the morning business. Traded prices for standard-quality copper were between RMB 58,430-58,630/mt, and RMB 58,470-58,750/mt for high-quality copper. SHFE copper prices marched down after starting lower, causing hedged copper to flow into spot markets. The price gap between SHFE 1302 and 1303 copper contract remained around RMB 200/mt, so cargo-holders were eager to move goods, resulting in an increase in copper supply. Speculators bought spot copper and sold SHFE copper contracts. However, copper premiums dropped all the way since most downstream producers have yet to return to markets. Overall copper supply thus exceeded demand, turning investors cautious towards future markets.