SMM Tells Why Deadlock Persists in Shanghai Imported Copper Market

Published: Jul 18, 2017 13:20

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The deadlock continued between sellers and buyers in Shanghai bonded zone copper market last week, with wait-and-see sentiment still strong, SMM learned.

SHANGHAI, Jul. 18 (SMM) – The deadlock continued between sellers and buyers in Shanghai bonded zone copper market last week, with wait-and-see sentiment still strong, SMM learned.

On the one hand, contango on the LME narrowed to around $ 6/tonne, bringing some pressure to sellers. However, no heavy selloffs were reported since many traders expect contango to return to around $ 10/tonne.

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On the other hand, high premiums for warrant goods, the off-season and unfavorable SHFE/LME copper price ratio dampened buying interest.

As of July 14, Yangshan copper premiums were $ 62-72/tonne, SMM data showed.

SMM expects wait-and-see sentiment to still prevail this week.

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yangshan copper premiums

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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