Spot Copper Price Movement (2014-7-21)

SHANGHAI, Jul. 21 (SMM) – In the Shanghai physical market, copper was offered Monday between a RMB 120/mt discount and a RMB 30/mt premium over the SHFE 1408 copper contract. Traded prices were RMB 49,730-49,850/mt for standard-quality copper and RMB 49,800-49,930/mt for high-quality copper. SHFE copper prices fell sharply on Monday, while physical copper prices also dropped below the RMB 50,000/mt mark. In response, large quantities of copper for arbitrage and deliverable goods flowed out, significantly increasing market supply. Premiums for physical copper narrowed and look set to fall further in the short term. Hydro-copper was quoted at a RMB 170/mt discount by the midday. After LME copper price sank below the USD 7,000/mt mark, middlemen barely entered the market on fears that prices may fall. Downstream producers were relatively cautious buying, with sluggish trading activity on Monday.