SHANGHAI, Jul 25 (SMM) – Spot copper was mostly offered at a discount of 50 yuan/mt to a premium of 20 yuan/mt over the SHFE 1808 contract in Shanghai on Wednesday July 25. This compared with a discount of 20 yuan/mt to a premium of 40 yuan/mt on July 24.
Higher arrivals of cargoes and declining downstream demand at the end of the month grew supplies in the market. The rebound in prices of futures also deterred buyers.
For copper with invoices in July, sellers lowered offers to a discount of 20 yuan/mt for high-quality cargoes, from flat to a premium of 20 yuan/mt earlier this morning. Offers were also lowered to a discount of 40 yuan/mt for standard-quality ones, from a previous discount of 30 yuan/mt.
Offers of cargoes with invoices for August, which were in greater supply, mostly stood 30 yuan/mt lower from offers with invoices in July.
Strong prices of futures and a glut of spot cargoes are likely to further grow discounts on July 26, SMM believes.
The SHFE 1808 contract met pressure at 50,000 yuan/mt on Wednesday July 25. This arose after it soared to a high of 50,270 yuan/mt overnight and closed 870 yuan/mt higher from Monday, at 50,090 yuan/mt.
At noon, high-grade copper traded at 49,840-49,970 yuan/mt and standard-quality copper traded at 49,820-49,920 yuan/mt.