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

Transactions of high-quality copper cooled from the previous days, with cargoes mostly offered at a premium of 80 yuan/mt, SMM learned. Trading of standard-quality copper started to pick up as premiums lowered from 30 yuan/mt to 10 yuan/mt at noon. Offers for hydro-copper stayed at a discount of 60 yuan/mt with limited trading.

The market showed signs of oversupply on Thursday. The SHFE 1805 contract was 200 yuan/mt lower than the 1806 contract, down from a gap of 210 yuan/mt on Wednesday. SMM does not expect spot premiums to remain firm at highs if the price gap continues to narrow.

However, cargoes are also unlikely to be offered at a discount before the delivery day on May 15. Premiums are likely to hover at 0-100 yuan/mt this week.

At noon, higher-grade copper mostly traded at 50,900-50,980 yuan/mt with standard-quality copper at 50,850-50,900 yuan/mt.

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