SMM Copper Market Daily Review (2013-10-18)

 

Spot copper in Shanghai was quoted at a contango of RMB 0-80/mt and a backwardation of RMB 0-20/mt over SHFE 1311 copper contract in the morning trading session. Traded prices were RMB 52,250-52,350/mt for standard-quality copper, and RMB 52,300-52,450/mt for high-quality copper. Cargo holders were in a rush to sell, causing backwardation to narrow. Prices of high-quality copper dropped due to plentiful supply. Contango of standard-quality copper widened slightly, though. Traders went bargain hunting, while purchases by downstream producers increased only marginally. In the afternoon, the continued selloff in spot copper market left resources offered at a contango of RMB 0-80/mt, with only quotes for Guixi copper managing to remain flat with SHFE current-month copper contract. Traded prices remained stable with morning session, but market saw mounting oversupply pressure. SHFE copper stocks increased by 10,524 mt to 172,109 mt last week, growing by over 20,000 mt in two weeks.