Snapshot: Spot copper offers in Shanghai

According to SMM survey, the inventory of aluminium ingot in Shanghai bonded area has been increasing for 4 consecutive weeks, and is likely to keep rising this week, which will widen the import losses.

The profits of secondary refined lead shrank as the lead prices fell below 15,000 yuan/mt, and the discounts narrowed.

Spot prices in Shanghai remained largely unchanged last week. Spot discounts of standard-quality copper stood at 150-130 yuan/mt, and at 90-70 yuan/mt for high-quality copper. As the price of copper rose from the 68,000 yuan/mt mark to above 69,000 yuan/mt, downstream buyers stood on the sidelines, purchasing as required. Some purchases occurred for long-term contracts delivery early last week. Purchases by traders weakened due to the completion of long-term contracts at the end of the week. Traders refrained from raising prices amid high inventory. Quotes barely changed but traded prices fell towards the low-end of the quotes.

Downstream demand came less strong than expected on the back of elevated copper futures

SMM sees further downsides in spot offers, which may flip to discounts across the board

SHFE data showed that copper inventories shrank more than 13,000 mt on the week to 135,513 mt as of Nov 15

Greater spot arrivals over the holiday and fluctuated futures prices are likely to keep consumers on the sideline

Procurement by traders for the delivery of long-term contracts remained dominant

Trades failed to pick up as the cut in offers did not come as much as expectations of downstream buyers

Higher offers of high-grade copper may buoy premiums of other types of copper products to 40-100 yuan/mt in sessions ahead