Chinese Stainless steel scrap prices gain on 9th June, 2015

[SMM Shanghai spot copper] During the day, overall trading in the Shanghai copper cathode spot market was relatively active. According to SMM, currently available supply in the market is tight, making it difficult to find cargo. On the one hand, recent port congestion has affected the berthing and warehousing pace of some imported copper, resulting in limited replenishment of imported supply to China's spot market; on the other hand, as the copper export window opens, some market participants have increased their willingness to export, which has also diverted some domestic available supply. Furthermore, on August 24, SMM's copper inventories in major Chinese regions stood at 114,200 mt, down 20,200 mt WoW from last Thursday. Inventories are declining rapidly, and the low inventory pattern further strengthens expectations of tight spot supply. Against this backdrop, suppliers have a strong intention to hold prices firm and hold back from selling, making low-priced supply difficult to find; at the same time, restocking demand from downstream users and traders still exists, boosting relatively active inquiries and transaction performance during the day.

Overnight, LME copper opened at $14,231/mt, edged down to $14,220/mt in early trading, then drifted higher to a high of $14,282.5/mt, and finally closed at $14,245/mt, up 0.42%, with trading volume of 16,000 lots and open interest of 266,000 lots, an increase of 2,569 lots from the previous trading day, indicating bulls adding positions. Overnight, the most-traded SHFE copper 2610 contract opened at 108,220 yuan/mt, drifted higher to a high of 108,540 yuan/mt in early trading, then pulled back to a low of 108,120 yuan/mt, and finally closed at 108,150 yuan/mt, up 0.22%, with trading volume of 34,000 lots and open interest of 200,000 lots, an increase of 8,439 lots from the previous trading day, indicating bulls adding positions.