Physical Copper Trading Improves as Downstream Producers Go Bargain-Hunting (Oct. 10, 2014)

SHANGHAI, Oct. 10 (SMM) – Physical copper in Shanghai was quoted Friday at a RMB 40-150/mt premium to the SHFE 1410 copper contract. Traded prices were RMB 48,300-48,400/mt for standard-quality copper and RMB 48,380-48,500/mt for high-quality copper.

As SHFE copper leveled off, some middlemen continued buying high-quality copper to meet demand from long-term contracts, while downstream producers ramped up purchases at low prices. Cargo holders were inclined to hold prices firm against declining supply, helping push up physical premiums. Trading activity improved slightly on Friday.