SMM Copper Market Daily Review (2015-6-5)

SHANGHAI, Jun. 8 (SMM) – The most active SHFE copper contract moved narrowed around RMB 42,900/mt last Friday and dipped to a low of RMB 42,740/mt before finishing the daytime trading at RMB 42,810/mt, down RMB 680/mt. Positions in the most active copper contract increased 4,660 and trading volumes grew 88,380 lots. Positions in SHFE 1509 copper contract climbed 9,402.

SHFE reported that copper inventories at its registered warehouses were down 10,670 mt to 145,383 mt last week.

Spot copper was still offered at premiums of RMB 40-90/mt to SHFE 1506 copper contract in Shanghai Friday morning. Traded prices were RMB 43,070-43,130/mt for standard-quality copper and RMB 43,090-43,170/mt for high-quality copper.

Spot copper supply remained ample, causing spot premiums to narrow. But prices of standard-quality copper were resistant to declines due to tight supply. Some speculators bought spot and sold futures. Bearish mood loomed among downstream buyers after SHFE copper prices fell to RMB 43,000/mt, so most deals were done between traders.