Trades Stay Quiet in Shanghai Spot Copper Market after Holiday (Oct. 8, 2015)

SHANGHAI, Oct. 8 (SMM) – On Thursday morning, spot copper traded between discounts of RMB 20/mt and premiums of RMB 20/mt in Shanghai due to the growth in SHFE copper prices. Few investors entered market with ample inventories, leaving demand softening. Thus, trading activities were also muted. Downstream buyers replenished few stocks after holiday while traders rushed to sell at highs, expanding spot discounts. In the afternoon, spot discounts on standard-quality copper widened above RMB 30/mt and high-quality copper inverted to discounts. Copper prices increased more than RMB 1,000/mt during China's week-long holiday. Cargo holders were active in selling at highs but downstream purchases were limited. As such, spot discounts should expand and transactions will not pick up in the rest two trading days this week.

Spot copper was largely offered between discounts of RMB 40/mt and premiums of RMB 20/mt over SHFE 1510 copper. Traded prices were RMB 39,340-39,450/mt for standard-quality copper and RMB 39,360-39,500/mt for high-quality copper.