Spot Copper Price Movement (2014-6-26)

SHANGHAI, June 26 (SMM) – In the Shanghai physical market, copper was offered Thursday at a RMB 150-420/mt premium over the SHFE front-month copper contract. Traded prices were RMB 50,430-50,570/mt for standard-quality copper and RMB 50,570-50,730/mt for high-quality copper. As SHFE copper prices extended gains on Thursday, cargo holders continued to trade in large volumes to raise cash, pressured by tight liquidity at the end of June. Premiums for high-quality copper, however, remained firm, since some supply was used to satisfy demand from long-term contracts. In contrast, premiums for standard-quality copper fell sharply, and those for hydro-copper were quoted below RMB 100/mt by the midday due to ample supply. Some middlemen with sufficient cash flows entered the market to buy low-priced goods, while downstream producers expressed little buying interest on Thursday.