SHANGHAI, Oct. 16 (SMM) – Physical copper in Shanghai was quoted Thursday at a RMB 50-170/mt premium to the SHFE 1411 copper contract. Traded prices were RMB 48,150-48,280/mt for standard-quality copper and RMB 48,200-48,370/mt for high-quality copper.

Large quantities of hedged goods flocked to the market on the back of a tumble in SHFE copper, while a sharp rise in the SHFE/LME copper price ratio resulted in sizeable inflows of imported copper. In response, physical copper premiums narrowed from above RMB 200/mt to some RMB 150/mt. Middlemen replenished stocks in light volumes, and downstream producers bought only to need. Trading activity remained lackluster on Thursday, with supply exceeding demand by a large margin.