Spot Copper Price Movement (2013-4-19)

SHANGHAI, Apr. 19 (SMM) – Spot copper in Shanghai was quoted at a premium of RMB 130-270/mt over SHFE 1305 copper contract on Friday. Traded prices for standard-quality copper were between RMB 50,550-51,100/mt, and RMB 50,600-51,300/mt for high-quality copper. SHFE 1308 copper contract opened higher, alleviating panic sentiment and allowing cargo holders to hold offers at premium. Later, SHFE copper dropped, causing cargo holders to sell for cash by lowering premium. Supply of imported copper increased as the RMB appreciated to 6.1718 against the US dollar and as the SHFE/LME copper price ratio rose. Ample spot copper supplies pushed premium all the way down. Some middlemen bought spot copper while selling off SHFE copper in the morning. The most active SHFE copper contract tumbled below RMB 50,000/mt towards mid-day, rekindling panic sentiment. Downstream producers refused to enter the market, leaving overall trading muted.