SHANGHAI, Jul 20 (SMM) – Spot copper was mostly offered flat to a premium of 50 yuan/mt over the SHFE 1808 contract in Shanghai on Friday July 20. This inched up from offers of flat to a premium of 40 yuan/mt on July 19.
Trading activity was mostly contributed by downstream buyers, who preferred standard-quality copper and restocked as needed.
While a plunging LME copper overnight drove the SHFE/LME price ratio up to 7.98, with import loss narrowed to around 200 yuan/mt on Friday, arrivals of imported cargoes remained limited in Shanghai market. As a result, premiums are likely to stay in the short run.
Traders were less interested in high-quality copper on Friday, which was offered at a premium of 40-50 yuan/mt. Offers for standard-quality cargoes were flat to a premium of 10 yuan/mt over the 1808 contract, and that for hydro-copper stood firm around a discount of 50 yuan/mt.
At noon, high-grade copper traded at 48,180-48,320 yuan/mt and standard-quality copper traded at 48,150-48,300 yuan/mt.