SHANGHAI, Jul 4 (SMM) – Spot copper was mostly offered at a discount of 60 yuan/mt to flat over the SHFE 1807 contract in Shanghai on Wednesday July 4. This narrowed from a discount of 120-50 yuan/mt on Tuesday amid active transactions, which were mostly contributed by traders.
Offers for cargoes are likely to turn from discounts to premiums on Jul 5 as falling futures prices of copper drive buyers to step up purchases, SMM expects.
The SHFE 1807 contract hovered around 50,690 yuan/mt in the morning trading session and tumbled below 50,000 yuan/mt in the afternoon. It lost nearly 1,000 yuan/mt during the first three trading days in July.
As traders pushed for lower prices, high-grade copper traded at a discount of 10 yuan/mt, down from an offer of flat over the SHFE 1807 contract in the morning. Standard-quality copper mostly traded at a discount of 60-50 yuan/mt, compared with offers of a discount of 40 yuan/mt.
Tighter supplies kept traded prices of hydro-copper firm at a discount of 80-70 yuan/mt.
At noon, high-grade copper traded at 50,650-50,760 yuan/mt and standard-quality copper traded at 50,620-50,720 yuan/mt.