Spot Copper Price Movement (2013-4-15)

SHANGHAI, Apr. 15 (SMM) – Spot copper in Shanghai was quoted at a discount of RMB 50-200/mt over SHFE 1304 copper contract on Monday. Traded prices for standard-quality copper were between RMB 53,800-54,300/mt, and RMB 53,880-54,500/mt for high-quality copper. SHFE 1308 copper contract started the day more than RMB 1,000/mt lower, causing price gap among SHFE copper contracts to expand to RMB 200-300/mt on the last trading day of the SHFE 1304 current-month copper contract. Cargo holders continued to move goods at highs. More imported copper flowed in as the profit/loss ratio of imported goods further narrowed, keeping spot copper supply ample, and forcing suppliers to quote high-quality copper at discounts of RMB 30-50/mt and standard-quality copper at discounts of RMB 80/mt. Most transactions were concluded at RMB 54,300/mt in the morning, with some deals also completed higher at RMB 54,500/mt. SHFE copper for August delivery fell another RMB 500/mt during the second trading session compared with the first session, widening price gap among SHFE copper contracts to over RMB 500/mt. Cargo holders refused to sell at large discounts, holding offers at discount of RMB 100-200/mt. Market bearishness grew. Downstream producers intended to go bargain-hunting after SHFE 1305 copper contract becomes the new current-month contract, while traders would like to hold offers at premium after delivery of SHFE 1304 current-month copper contract. Spot copper traded prices slid to RMB 53,800-54,000/mt during the second trading session, a decrease of RMB 500/mt from the first session. Short selling dominated the market.