Spot Copper Price Movement (2013-3-28)

SHANGHAI, Mar. 28 (SMM) – Spot copper discounts were RMB 0-30/mt and premiums RMB 0-80/mt in Shanghai on Thursday. Traded prices for standard-quality copper were between RMB 55,630-55,700/mt, and RMB 55,680-55,850/mt for high-quality copper. A plunging Shanghai Composite Index drove prices for the most active SHFE copper contracts down after a high opening. Cargo holders were aggressively selling for cash. Imported copper flooded in, pushing spot copper premiums all the way down. High-quality copper was quoted at a slight premium over SHFE 1304 copper contract near mid-day, while standard-quality copper was offered at discounts. Quotations for wet-processed copper were almost flat with standard-quality copper due to extremely tight supply. A limited number of middlemen entered the market in the morning. Downstream producers were little interested in buying as liquidity crunch bit in, leaving transactions muted. It is widely believed among market players that spot copper premiums will hardly be seen next week.