SHANGHAI, Oct. 14 (SMM) – Physical copper in Shanghai was quoted Tuesday at a RMB 0-120/mt discount to the SHFE 1410 copper contract. Traded prices were RMB 48,400-48,520/mt for standard-quality copper and RMB 48,460-48,600/mt for high-quality copper.
As SHFE copper edged up on Tuesday, the price gap between the SHFE 1410 and 1411 copper contracts remained at around RMB 300/mt. After the SHFE/LME copper price ratio leveled out, a variety of imported copper brands flocked to the market. Cargo holders rushed to sell ahead of the delivery for the SHFE front-month copper contract, with physical copper quoted at a discount across the board.
Cargo holders became disinclined to move goods at high discounts as the price gap between the SHFE 1410 and 1411 copper contracts narrowed subsequently. A small number of speculative traders entered the market to go bargain-hunting. Meanwhile, most downstream producers were buying only to need despite brisk enquiries. Trading activity improved slightly on Tuesday.