SMM Copper Market Daily Review (2013-10-9)

 

Spot copper in Shanghai was offered at a contango of RMB 0-50/mt and a backwardation of RMB 0-100/mt over SHFE 1310 copper contract in the morning session. Traded prices were RMB 52,120-52,450/mt for standard-quality copper, and RMB 52,250-52,620/mt for high-quality copper. Weak demand forced some to cut offers. Standard-quality copper, in particular, was quoted at a contango over SHFE current-month copper contract. SHFE copper fell dramatically near midday, leaving suppliers split over offers. Some held quotations unchanged at the beginning, but most goods holders cut quotes. Low-end standard-quality copper was offered RMB 100/mt below SHFE 1310 copper contract. Traders bought spot copper and sold SHFE copper, while downstream producers stayed out of the market. In the afternoon, spot copper was mainly quoted between contango of RMB 0-50/mt and backwardation of RMB 0-80/mt, with traded prices falling slightly to RMB 52,100-52,250/mt. Market saw fewer supplies for high-grade copper, and most resources tradable in the market are hydro copper and standard-grade copper. Transactions were rarely made.