Spot copper sellers hold back on tight imports, lower inventory

SHANGHAI, Jul 31 (SMM) – Spot copper was mostly offered at a discount of 30 yuan/mt to a premium of 20 yuan/mt over the SHFE 1808 contract in Shanghai on Tuesday July 31. This compared with a discount of 60-20 yuan/mt on Monday July 30. 

Sellers continued to hold back as supplies of imported copper was limited after the import window closed on Monday and as domestic inventories extended their decline. 

This morning saw brisk transactions, with standard-quality copper offered at a discount of 30 yuan/mt and high-quality cargoes at a premium of 10 yuan/mt that received much interest. Downstream procurement cooled before noon as seller raised offers to a discount of 20 yuan/mt and a premium of 20 yuan/mt for the two type of cargoes, respectively. 

Traders accounted for most of the trading activity on Tuesday. Premiums are likely to rise further on Wednesday August 1 if supply remains tight. 

The SHFE 1808 contract hovered at 49,700 yuan/mt this morning, and closed at 49,800 yuan/mt at the end of morning trading session, up 60 yuan/mt from that time on July 30. 

At noon, high-grade copper traded at 49,660-49,720 yuan/mt and standard-quality copper traded at 49,630-49,700 yuan/mt.