SHANGHAI, Aug 17 (SMM) – Spot copper was mostly offered at a premium of 110-190 yuan/mt over the SHFE 1809 contract in Shanghai on Friday August 17. This compared with a premium of 80-130 yuan/mt a day earlier.
Brisk transactions from both traders and downstream buyers, amid tight supply in the market, buoyed the premiums. Inventories are expected to remain at low levels during the weekend as typhoon Rumbia will deter custom clearance of any imported cargoes in Shanghai.
While offers stood at a premium of 140-150 yuan/mt for higher-quality copper and 100-120 yuan/mt for standard-quality one in early morning, purchasing enthusiasm pushed the premiums up to 180-190 yuan/mt and 140-150 yuan/mt, respectively, in the second trading session in the morning. Premiums of hydro-copper were also buoyed from 80 yuan/mt to 120 yuan/mt.
The SHFE 1809 contract regained the losses on August 16 amid softened US dollar. It hovered around 47,900 yuan/mt and closed at that level at the end of the morning trading session, up 170 yuan/mt from the same time on Thursday.
At noon, high-grade copper traded at 48,020-48,100 yuan/mt and standard-quality copper traded at 47,980-48,060 yuan/mt.