Higher prices, wider backwardation sideline spot copper buyers

SHANGHAI, Mar 13 (SMM) – Higher prices of futures and expanded backwardation of SHFE copper contracts deterred downstream purchases on the morning of Wednesday March 13 in Shanghai, as the delivery day approached. 

This morning, offers stood mostly at a discount of 40 to a premium of 70 yuan/mt, compared with a premium up to 40 yuan/mt in the previous morning.

Compared with early trades, premiums of high-quality copper dipped some 50 yuan/mt to 40-50 yuan/mt around noon. Sellers of standard-quality copper also lowered offers to a discount of 40 yuan/mt, from a premium of 10 yuan/mt in the early morning. These failed to attract much downstream consumption. 

Price spread between the SHFE March and April copper contracts widened to above 200 yuan/mt this morning. 

On the morning of March 13, the SHFE 1903 contract tested pressure from 50,000 yuan/mt and closed at 49,910 yuan/mt at the end of the morning trading session, up 90 yuan/mt from that time on March 12.
 
At noon on March 13, high-grade copper traded at 49,940-50,020 yuan/mt and standard-quality copper traded at 49,860-49,940 yuan/mt.