Spot copper trading picks up on downstream restocking

SHANGHAI, May 9 (SMM) – Spot copper was mostly offered at a premium of 20-100 yuan/mt over the SHFE 1805 contract on Wednesday May 9 in the Shanghai market. This compared with a premium of 10-70 yuan/mt on the previous day. 

Transactions were more active than the last two days, mostly driven by restocking across downstream consumers, SMM learned. 

High-quality copper traded briskly in the morning as speculators saw profits from the wide future-spot basis of around 210 yuan/mt. Offers for high-quality copper stood firm at a premium of 80-90 yuan/mt at noon, offers for standard-quality copper dipped to a premium of around 20 yuan/mt. Premiums are unlikely to remain at highs in the near term as speculators indicate a willingness to destock.

Offers for hydro-copper fell to a discount of 70-60 yuan/mt from a discount of 30 yuan/mt during the day.

At noon, higher-grade copper mostly traded at 50,710-50,770 yuan/mt and standard-quality copper traded at 50,670-50,710 yuan/mt.

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