Supply glut, weak trades grow spot copper discounts-Shanghai Metals Market

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Supply glut, weak trades grow spot copper discounts

Price Review & Forecast 02:33:54PM Jul 26, 2018 Source:SMM

SHANGHAI, Jul 26 (SMM) – Spot copper was mostly offered at a discount of 90-50 yuan/mt over the SHFE 1808 contract in Shanghai on Thursday July 26. This compared with a discount of 50 yuan/mt to a premium of 20 yuan/mt on July 25

Sellers grew keener to destock as supplies continued to grow. However, transaction activities weakened as most long-term supply agreements have been fulfilled. 

SMM believes that some traders may be keen to purchase if discounts widened to 100 yuan/mt on July 27. 

At the end of the morning trading session on on July 26, discounts of high-quality copper grew to 60 yuan/mt, from 40-30 yuan/mt, and that of standard-quality cargoes grew to 90-80 yuan/mt, from 70 yuan/mt. Offers for hydro-copper were also lowered to a discount of 140 yuan/mt from 90-80 yuan/mt on July 25.

The SHFE 1808 contract met pressure at 50,000 yuan/mt on July 26 and closed at 49,940 yuan/mt at the end of morning trading session, up 30 yuan/mt from the same time on July 25.

At noon, high-grade copper traded at 49,870-49,990 yuan/mt and standard-quality copper traded at 49,850-49,950 yuan/mt.

Price

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#1 Refined Cu
Apr.19
49430.0
-170.0
(-0.34%)
Yangshan Copper Premium(Bill of Lading)
Apr.19
51.5
0.0
(0.00%)
Yangshan Copper Premium(Warehouse Warrant)
Apr.19
50.5
0.0
(0.00%)
Imported Cu Concentrate TC(Cu≥26%,Week)
Apr.19
67.0
-1.5
(-2.19%)
Imported Cu Concentrate TC(Cu≥26%,Month)
Mar.29
73.5
-6.0
(-7.55%)

Supply glut, weak trades grow spot copper discounts

Price Review & Forecast 02:33:54PM Jul 26, 2018 Source:SMM

SHANGHAI, Jul 26 (SMM) – Spot copper was mostly offered at a discount of 90-50 yuan/mt over the SHFE 1808 contract in Shanghai on Thursday July 26. This compared with a discount of 50 yuan/mt to a premium of 20 yuan/mt on July 25

Sellers grew keener to destock as supplies continued to grow. However, transaction activities weakened as most long-term supply agreements have been fulfilled. 

SMM believes that some traders may be keen to purchase if discounts widened to 100 yuan/mt on July 27. 

At the end of the morning trading session on on July 26, discounts of high-quality copper grew to 60 yuan/mt, from 40-30 yuan/mt, and that of standard-quality cargoes grew to 90-80 yuan/mt, from 70 yuan/mt. Offers for hydro-copper were also lowered to a discount of 140 yuan/mt from 90-80 yuan/mt on July 25.

The SHFE 1808 contract met pressure at 50,000 yuan/mt on July 26 and closed at 49,940 yuan/mt at the end of morning trading session, up 30 yuan/mt from the same time on July 25.

At noon, high-grade copper traded at 49,870-49,990 yuan/mt and standard-quality copper traded at 49,850-49,950 yuan/mt.