Physical Copper Trading Picks Up As SHFE Copper Bottoms Out (Jul. 30, 2014)

SHANGHAI, Jul. 30 (SMM) – In the Shanghai physical market, copper was offered Wednesday between a RMB 100/mt discount and a RMB 20/mt premium over the SHFE 1408 copper contract. Traded prices were RMB 50,350-50,430/mt for standard-quality copper and RMB 50,400-50,500/mt for high-quality copper. As SHFE copper prices bottomed out, cargo holders were anxious to move goods at the end of July. Some traders with considerable cash flows entered the market to buy low-priced goods, causing physical discounts to narrow, with high-quality copper offered at a small premium. Meanwhile, downstream producers went bargain-hunting, with trading activity improving slightly, and the market was still dominated by large speculators and traders on Wednesday.