Tight imported supply buoys spot copper premiums

SHANGHAI, Aug 6 (SMM) – Spot copper was mostly offered at a premium of 50-90 yuan/mt over the SHFE 1808 contract in Shanghai on Monday August 6. This compared with a premium of 40-80 yuan/mt last Friday. 

Sellers continued to hold back amid limited arrivals of imported cargoes. Fewer imports are expected this week on depreciating yuan, which stood at a low of 6.91 per dollar last Friday. 

Offers of high-quality copper were raised from a premium of 80 yuan/mt to 90 yuan/mt during the morning. Premiums of standard-quality products also increased some 20 yuan/mt to 70 yuan/mt, and such prices attracted much purchasing interest. SMM expects overall premiums to grow further to 100 yuan/mt on Tuesday. 

The SHFE 1808 contract traded within a narrow range around 49,200 yuan/mt during the morning. It closed at 49,220 yuan/mt at the end of the morning trading session, up 80 yuan/mt from that time on August 3. The SHFE 1809 contract mostly stood 100-110 yuan/mt higher than the 1808 contract this morning. 

At noon, high-grade copper traded at 49,280-49,350 yuan/mt and standard-quality copper traded at 49,250-49,330 yuan/mt.