Home / Metal News / Aluminium / SMM Copper Market Daily Review (2013-7-5)
SMM Copper Market Daily Review (2013-7-5)
Jul 8,2013 09:02CST
price review forecast
SHFE 1310 copper contract opened RMB 130/mt lower at RMB 50,110/mt on Friday.

SHANGHAI, Jul. 8 (SMM) – SHFE 1310 copper contract opened RMB 130/mt lower at RMB 50,110/mt on Friday. The most active SHFE copper contract retreated from RMB 50,000/mt to RMB 49,500/mt after its opening due to massive selloff of SHFE forward-month copper contracts, and dipped further to RMB 49,390/mt in the afternoon. Finally, SHFE copper for October delivery finished at RMB 49,440/mt, down RMB 800/mt or 1.59%. Trading volumes and positions of SHFE 1310 copper contracts shrank 57,802 lots and 28,632 lots, respectively, while trading volumes and positions of SHFE 1311 copper contracts increased 53,230 lots and 25,688 lots, respectively. Selling pressure for futures copper is expected to escalate.

Spot copper in Shanghai was quoted at a discount of RMB 0-40/mt and premium of RMB 0-80/mt over SHFE 1307 copper contract prices on Friday. Traded prices for standard-quality copper were between RMB 50,050-50,200/mt, and RMB 50,130-50,350/mt for high-quality copper. SHFE copper moved trimmed almost 1.5% after a low opening, driving spot copper suppliers to sell at highs. Traders held offers firm towards mid-day as SHFE copper stopped falling. High-quality copper continued to gain favor, but the increase in premium was limited. Downstream producers increased purchases only slightly for the coming weekend. In the afternoon, trading activity in spot copper market was more brisk, with premiums up to RMB 0-100/mt and traded prices at RMB 50,050-50,250/mt. SHFE copper inventories fell sharply 9,472 lots to 173,021 lots. Some holders of imported copper in urgent need of cash flow lower premiums, especially for hydro copper, to promote sales. In this context, some downstream buyers purchasing as needed favored low-priced resources, driving down copper inventories. 
SHFE copper price
spot copper price

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news