Physical Copper Trades at RMB 120-220/mt Premiums (August 29, 2014)

SHANGHAI, Aug. 29 (SMM) – In the Shanghai physical market, copper was offered Friday at a RMB 120-220/mt premium over the SHFE 1409 copper contract. Traded prices were RMB 50,200-50,280/mt for standard-quality copper and RMB 50,250-50,350/mt for high-quality copper. After SHFE copper slumped on Friday, hedged supply flooded into the market, while most downstream producers showed modest buying interest in the last trading day of August, causing spot premiums to fall. As the price of the red metal steadied by the midday, spot premiums edged up since some middlemen with sufficient cash flows began buying low-priced goods. Meanwhile, downstream producers remained cautious in purchasing raw material due to tight month-end liquidity. Transactions remained dominated by middlemen on Friday.