SHANGHAI, Aug. 27 (SMM) – In the Shanghai physical market, copper was offered Wednesday at a RMB 90-200/mt premium over the SHFE 1409 copper contract. Traded prices were RMB 50,640-50,800/mt for standard-quality copper and RMB 50,700-50,880/mt for high-quality copper.
After SHFE copper fell, spot copper for hedge flowed in the market, while cargo holders rushed to convert inventories into cash, both causing supply to grow. As a result, premiums for some copper brands fell by as much as RMB 100/mt. Premiums for standard-quality copper followed those for high-quality copper down. Some middlemen entered the market to buy after premiums for high-quality copper dropped to around RMB 150/mt. Downstream producers, however, continued to buy only to need, with transactions done mostly by middlemen on Wednesday.