SHANGHAI, Apr. 23 (SMM) – In the Shanghai physical market, copper was offered Wednesday at a premium of RMB 440-600/mt over the nearby SHFE contract. Traded prices were RMB 47,980-48,150/mt for standard-quality copper and RMB 48,040-48,280/mt for high-quality copper. As SHFE copper prices rallied before a pullback, cargo holders ramped up deliveries at high prices, and copper supply from long-term contracts continued to flow in the market. As a result, physical premiums fell with signs of panic selling in the market, but downstream producers still favored standard-quality copper, allowing narrower gap between standard-quality and high-quality copper. Standard-quality copper was quoted at a premium of RMB 440-520/mt over the nearby SHFE contract by the midday. Middlemen were disinclined to enter the market after physical premiums continued to narrow, with light trading volumes and supply exceeding demand.
For queries, please contact Michael Jiang at michaeljiang@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn