SMM Copper Market Daily Review (2015-5-5)

SHANGHAI, May 6 (SMM) – The July delivery SHFE copper touched a low of RMB 45,550/mt during daytime trading Tuesday, due to falling Chinese stocks, lower LME copper and longs closing positions. The red metal ended at RMB 45,730/mt. Trading volumes of the most active copper contract fell by 33,940 lots and positions dropped 17,356.

Spot copper quoted at premiums of RMB 0-90/mt in Shanghai Tuesday morning. Standard-quality copper traded at RMB 45,750-45,920/mt, and high-quality copper sold for RMB 45,800-45,980/mt.

Cargo holders rushed to sell at highs after SHFE copper dropped, highlighting oversupply pressure in spot market. Some standard-quality copper was offered on par with SHFE July-delivery copper near midday. Some hydro-copper brands quoted at discounts. Downstream buyers rarely entered the market.