Tight supplies support spot copper premiums

SHANGHAI, Nov 28 (SMM) – Tight supplies, traders' and downstream demand for cargoes with November's invoices kept spot copper premiums at 70-130 yuan/mt, over the SHFE December contract, in Shanghai on the morning of Wednesday November 28. This compared with a premium of 90-140 yuan/mt on Tuesday November 27. 

While offers stood at a premium of 80-130 yuan/mt, high-quality copper mostly traded at a premium of 110-120 yuan/mt, with standard-quality copper at 70 yuan/mt. Relatively thin trades expanded discounts of hydro-copper to 80-60 yuan/mt at noon.

In the second morning trading session, rebounded prices of futures deterred spot transactions. However, premiums were firm as supplies remained tight. 

The SHFE 1812 contract rallied after slumped overnight, and settled at 49,140 yuan/mt at the end of the morning trading session, up 10 yuan/mt from that time on Tuesday. 

At noon on November 28, high-grade copper traded at 49,040-49,200 yuan/mt and standard-quality copper traded at 49,000-49,160 yuan/mt.