Brisk trades buoy spot copper premiums in Shanghai

Published: Nov 27, 2018 14:49

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Spot copper was mostly offered at a premium of 90-140 yuan/mt over the SHFE Dec contract this morning

SHANGHAI, Nov 27 (SMM) – Brisk trades in Shanghai spot copper market buoyed premiums on the morning of Tuesday November 27. Spot copper was mostly offered at a premium of 90-140 yuan/mt over the SHFE December contract this morning. This compared with a premium of 60-130 yuan/mt on Monday November 26.

Lower prices of futures encouraged downstream purchases. Demand from traders at the year-end also supported spot trades. These raised premiums of high-quality copper to 130-140 yuan/mt at noon, from 120 yuan/mt in early morning, and increased premiums of standard-quality copper to 90-100 yuan/mt, from 80 yuan/mt. Discounts of hydro-copper also narrowed, to 80-40 yuan/mt at noon.

Market participants should monitor if cash flow issues at the end of the month weigh on offers, SMM believes.

The SHFE 1812 contract hovered at lows around 49,200 yuan/mt after slumped below 49,000 yuan/mt overnight. It settled at 49,190 yuan/mt at the end of the morning trading session, down 140 yuan/mt from that time on Monday.

At noon on November 27, high-grade copper traded at 49,300-49,370 yuan/mt and standard-quality copper traded at 492,700-49,340 yuan/mt.

Market commentary Futures movement Spot copper

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