Physical Copper Trading Slows as SHFE Copper Levels Off (Aug. 1, 2014)

SHANGHAI, Aug. 1 (SMM) – In the Shanghai physical market, copper was offered Friday between a RMB 40/mt discount and a RMB 40/mt premium over the SHFE 1408 copper contract. Traded prices were RMB 50,600-50,660/mt for standard-quality copper and RMB 50,650-50,720/mt for high-quality copper. As SHFE copper prices hovered in narrow ranges on Friday, cargo holders were inclined to hold prices firm on bullish sentiment towards physical premiums. Trading activity, however, was sluggish. The price gap between standard-quality copper and high-quality copper remained small with sufficient supply in the market. Middlemen stayed out of the market, while downstream producers ramped up purchases ahead of the weekend.