Spot Copper Remains in Surplus in Shanghai (Jan. 26, 2015)

SHANGHAI, Jan. 26 (SMM) – Spot copper was quoted between a RMB 20/mt discount and a RMB 50/mt premium to the SHFE 1502 copper contract in Shanghai on Monday. Standard- and high-quality copper sold for RMB 39,850-40,330/mt and RMB 39,880-40,380/mt, respectively.

In the wake of a tumble in SHFE copper, wait-and-see sentiment grew in the market, leaving spot copper prices quoted later than usual. Spot copper remained sufficient as the month-end liquidity crunch forced smelters to sell and as hedged supplies hit the market. Standard-quality copper traded steadily at par with the SHFE 1502 copper contract, while high-quality copper traded nearly at a RMB 50/mt premium to the contract. Quotations for hydro-copper were firm due to tight supply, almost equal to those for standard-quality copper. Cargo holders held quotations steady even though the SHFE front-month copper contract fell below RMB 40,000/mt by the midday. Downstream producers stepped up bargain-hunting to capitalize on the sharp fall in futures prices. Spot copper remained in surplus on Monday.