SHANGHAI, Jun. 30 (SMM) – Spot copper premiums in China’s domestic market dropped for three days in a row, Shanghai Metals Market reports.
On Jun. 29, SMM spot copper premiums averaged at 30 yuan per tonne, according to SMM data.
In fact, the premiums had been hovering firmly around 100 yuan per tonne after June’s delivery thanks to a sharp decline in SHFE copper stocks and falling inflows of imported resources.
“The recent drop is due mainly to growing supply and low acceptance by buyers at highs,” SMM copper analyst explains.
Copper suppliers, facing tight month-end liquidity, sold off goods to the market, weighing down spot premiums.
“Spot premiums will be continuing facing downward pressures during the last few trading days of June, but any declines should be small as inflows of imported copper are still now constrained, and the premiums will hold firm in July,” SMM expects.
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