Spot Copper Price Movement (2014-6-17)

SHANGHAI, June 17 (SMM) – In the Shanghai physical market, copper was offered Tuesday at a RMB 380-600/mt premium over the SHFE front-month copper contract. Traded prices were RMB 49,150-49,230/mt for standard-quality copper and RMB 49,220-49,400/mt for high-quality copper. As SHFE copper prices extended gains, cargo holders intended to push traded prices higher to levels seen Monday following the delivery date. Market players regarded physical premiums in the morning trading as too much high, and virtually no transactions were reported. Physical premiums narrowed subsequently. The price gap between standard-quality and high-quality copper remained large since the SHFE/LME copper price ratio hovered at high levels. Guixi copper brand was quoted at firm prices. Middlemen entered the market to buy low-price copper supply, and downstream producers expressed low buying interest, universally holding that physical premiums were too high. Trading volumes were thin on Tuesday, with most transactions done among middlemen.