Physical Copper Trading Improves on Increasing Bargain-Hunting Activity (Oct. 17, 2014)

SHANGHAI, Oct. 17 (SMM) – Physical copper in Shanghai was quoted Friday at a RMB 60-150/mt premium to the SHFE 1411 copper contract. Traded prices were RMB 47,550-47,750/mt for standard-quality copper and RMB 47,580-47,800/mt for high-quality copper.

As SHFE copper stretched losses, hedged goods flooded to the market. Speculative traders entered the market to buy low-priced goods, while downstream producers ramped up purchases after prices fell below RMB 48,000/mt. Cargo holders, however, withheld goods from sale at low prices. The price gap between inferior and high-quality copper brands narrowed further, with trading activity improving markedly on Friday.