SMM Copper Market Daily Review (2015-5-22)

SHANGHAI, May 25 (SMM) – The July-delivery SHFE copper stayed in a narrow range Friday morning, and moved up slightly to RMB 45,220/mt in the afternoon aided by a 2.6% rally in Chinese shares. The prices finally ended the daytime trading at RMB 45,110/mt, up RMB 130/mt. SHFE 1507 copper contract positions declined 15,934, and trading volumes decreased 49,.744 lots. Positions of SHFE 1508 copper contract increased 13,436 and trading volumes dropped 19,748 lots.

SHFE reported a 10,521 mt decline in copper stocks in its registered warehouses last week to 148,818 mt.

Spot copper was still offered at premiums of RMB 30-110/mt to SHFE 1506 copper contract in Shanghai Friday morning. Standard-quality copper traded at RMB 45,180-45,240/mt, and high-quality copper sold for RMB 45,200-45,280/mt. In the afternoon, the spot premiums continued to narrow to RMB 10-80/mt.

Cargo holders were in a rush to sell, driving up spot supply. But both traders and downstream buyers rarely entered the market at the end of the week. Supply of hydro-copper remained tight, though.