Spot Copper Price Movement (2014-6-4)

SHANGHAI, June 4 (SMM) – In the Shanghai physical market, copper was quoted Wednesday at a RMB 320-500/mt premium over the SHFE front-month copper contract. Traded prices were RMB 49,900-49,980/mt for standard-quality copper and RMB 50,000-50,100/mt for high-quality copper. As SHFE copper prices fell sharply Wednesday, proportion of imported copper was still rather limited, with the overall copper supply down. In this context, physical premiums held firm and rallied after SHFE copper prices dropped further. Some speculators entered the market to purchase physical copper and sell copper futures contracts, while downstream producers continued to take a wait-and-see stance at prices above RMB 50,000/mt. A majority of transactions were done among middlemen, with the market still dominated by cautious sentiment on Wednesday.