SHANGHAI, Aug. 13 (SMM) – In the Shanghai physical market, copper was offered Wednesday at a RMB 10-80/mt discount over the SHFE 1408 copper contract. Traded prices were RMB 49,820-50,100/mt for standard-quality copper and RMB 49,860-50,160/mt for high-quality copper.
As SHFE copper prices fell slightly, the price gap between the SHFE 1408 and 1409 copper contracts remained above RMB 250/mt. Cargo holders continued to convert goods into cash during the morning trading, while some speculative investors entered the market to buy physical copper while building short positions on the futures market.
After the SHFE front-month copper contract fell below the RMB 50,000/mt mark, down by more than RMB 300/mt, some arbitraged supply flowed in the physical market, adding to pressure from growing supply. A variety of imported copper brands were available in the market, with increasing hydro-copper brands and non-standard copper brands. Middlemen continued to buy low-priced goods, while downstream producers ramped up purchases after copper prices dropped below RMB 50,000/mt. Trading activity turned brisker, but pressure from rising supply also increased on Wednesday.