Physical Copper Trading Remains Weak as Supply Outstrips Demand (August 12, 2014)-Shanghai Metals Market

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Physical Copper Trading Remains Weak as Supply Outstrips Demand (August 12, 2014)

Price Review & Forecast 01:20:34PM Aug 12, 2014 Source:SMM

SHANGHAI, Aug. 12 (SMM) – In the Shanghai physical market, copper was offered Tuesday between a RMB 40/mt discount and a RMB 40/mt premium over the SHFE 1408 copper contract. Traded prices were RMB 50,080-50,140/mt for standard-quality copper and RMB 50,120-50,180/mt for high-quality copper. A sharp fall in SHFE copper prices and a wider RMB 300/mt gap between the SHFE 1408 and 1409 copper contracts gave cargo holders an incentive to step up moving goods. As a result, physical supply continued to grow, with a variety of copper brands available in the market. Meanwhile, middlemen barely entered the market on limited profit margins. Downstream producers slightly increased purchases after copper prices fell to around RMB 50,000/mt, but held a wait-and-see attitude towards prices. Trading activity was relatively sluggish on Tuesday, with supply outstripping demand notably.
 

Physical Copper Trading Remains Weak as Supply Outstrips Demand (August 12, 2014)

Price Review & Forecast 01:20:34PM Aug 12, 2014 Source:SMM

SHANGHAI, Aug. 12 (SMM) – In the Shanghai physical market, copper was offered Tuesday between a RMB 40/mt discount and a RMB 40/mt premium over the SHFE 1408 copper contract. Traded prices were RMB 50,080-50,140/mt for standard-quality copper and RMB 50,120-50,180/mt for high-quality copper. A sharp fall in SHFE copper prices and a wider RMB 300/mt gap between the SHFE 1408 and 1409 copper contracts gave cargo holders an incentive to step up moving goods. As a result, physical supply continued to grow, with a variety of copper brands available in the market. Meanwhile, middlemen barely entered the market on limited profit margins. Downstream producers slightly increased purchases after copper prices fell to around RMB 50,000/mt, but held a wait-and-see attitude towards prices. Trading activity was relatively sluggish on Tuesday, with supply outstripping demand notably.