Spot Discounts in Shanghai Copper Market Likely to Widen on Ample Supply (Feb. 10, 2015)

SHANGHAI, Feb. 10 (SMM) – Spot copper was offered between a discount of RMB 20/mt and a premium of RMB 60/mt to the SHFE 1502 copper contract in Shanghai early Tuesday. Prices were RMB 41,300-41,400/mt for standard-quality copper and RMB 41,330-41,450/mt for high-quality copper. Transactions were limited on the last trading day for SHFE 1502 copper contract, and price gap between SHFE 1502 and 1503 copper contracts widened in the morning. Most cargo holders quoted at discounts of RMB 100-180/mt to SHFE 1503 copper contract. Later, the discounts expanded to RMB 120-200/mt.

Some traders sourced goods at lows, and downstream buyers only bought on needs. Spot discounts are likely to widen on ample copper supply and few trades.