SHANGHAI, Dec 26 (SMM) – Transactions cooled in the Shanghai spot copper market on Wednesday December 26 after downstream buyers purchased on lower prices of futures yesterday. This resulted in discount offers over the SHFE 1901 contract.
While sellers initially offered at premiums of 10-60 yuan/mt in early morning, slowed purchases lowered offers to a discount of 30 yuan/mt for standard-quality copper, and to a premium of 40 yuan/mt for high-quality copper near noon. Discounts of hydro-copper also deepened, to 200 yuan/mt at noon.
Sellers were eager to clear inventories at the year-end, and this also accounted for larger discounts. SMM expects further downward room in spot offers in the afternoon trading session.
On the morning of December 26, the SHFE 1901 contract hovered around 48,000 yuan/mt and settled at 47,940 yuan/mt at the end of the morning trading session, up 60 yuan/mt from that time on December 25.
At noon on December 26, high-grade copper traded at 48,000-48,100 yuan/mt and standard-quality copper traded at 47,950-48,060 yuan/mt.