SHANGHAI, Feb 12 (SMM) – Speculative demand picked up and improved overall trades in Shanghai spot copper market on the morning of Tuesday February 12, the second trading day after the week-long Chinese New Year holiday.
Offers for discounts of high-quality copper attracted purchases from traders, while interest in standard-quality copper remained limited. SMM does not expect the discounts to widen much ahead of the delivery date on February 15.
On the morning of February 12, offers stood mostly at a discount of 50 yuan/mt to a premium of 10 yuan/mt over the SHFE 1902 contract, compared with a discount of 40 yuan/mt to a premium of 30 yuan/mt on February 11.
At noon today, discounts of standard-quality copper were heard at 50 yuan/mt, greater than the discount of 30 yuan/mt earlier in the morning. Purchases by traders pulled offers of high-grade copper to a premium of 10 yuan/mt at noon, from a discount of 10 yuan/mt earlier this morning.
On the morning of February 12, the SHFE 1902 contract consolidated around 48,100 yuan/mt and closed at 48,070 yuan/mt at the end of the morning trading session, down 80 yuan/mt from that time on February 11.
At noon on February 12, high-grade copper traded at 48,100-48,150 yuan/mt and standard-quality copper traded at 48,050-48,100 yuan/mt.