Spot copper premiums stabilise while trades remain quiet

Published: Mar 27, 2019 13:55
Downstream buyers only restocked as required, and purchases from traders weakened significantly

SHANGHAI, Mar 27 (SMM) – While trades of spot copper remained quiet, sellers held premiums steady in Shanghai on the morning of Wednesday March 27. Downstream buyers only restocked as required, and purchases from traders weakened significantly. 

This morning, offers stood mostly at a premium of 980-1,100 yuan/mt against the SHFE April contract, compared with a premium of 960-1,120 yuan/mt in the previous morning.

At noon of March 27, premiums of standard-quality copper were heard at 980-1,000 yuan/mt, while that of high-quality copper at 1,080-1,100 yuan/mt. This changed little from early trades. 

SMM does not expect the spot premiums for products with May's invoices to change significantly at the end of the month. 

Some small sellers offered cargoes with April invoices at a discount of 150 yuan/mt for standard-quality copper, and at a discount of 80-60 yuan/mt for high-quality copper. Hesitant downstream consumers kept trades thin. 

On the morning of March 27, the SHFE 1904 contract stabilised and ended it at 48,260 yuan/mt at the end of the morning trading session, up 120 yuan/mt from that time on March 26.

At noon on March 27, high-grade copper traded at 49,350-49,430 yuan/mt and standard-quality copper traded at 49,250-49,330 yuan/mt.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Chile's Water Crisis Threatens Atacama's Copper and Lithium Mining Amid 14-Year Drought
16 hours ago
Chile's Water Crisis Threatens Atacama's Copper and Lithium Mining Amid 14-Year Drought
Read More
Chile's Water Crisis Threatens Atacama's Copper and Lithium Mining Amid 14-Year Drought
Chile's Water Crisis Threatens Atacama's Copper and Lithium Mining Amid 14-Year Drought
Chile’s most pressing crisis at present is the issue of water resources. The Atacama Desert in Chile is one of the driest regions in the world and also the core area for copper and lithium ore extraction. The local area has experienced a drought for as long as 14 years, and reservoir storage has fallen to only about 30%. For miners, water resources are not a secondary issue, but an indispensable key production factor in such processes as ore processing, dust suppression, and equipment cooling. The decline in ore grade has further exacerbated the predicament
16 hours ago
Trump Adjusts Metal Tariffs, Applies 50% Rate to Consumer Prices Under Section 232, Details Unclear
16 hours ago
Trump Adjusts Metal Tariffs, Applies 50% Rate to Consumer Prices Under Section 232, Details Unclear
Read More
Trump Adjusts Metal Tariffs, Applies 50% Rate to Consumer Prices Under Section 232, Details Unclear
Trump Adjusts Metal Tariffs, Applies 50% Rate to Consumer Prices Under Section 232, Details Unclear
US President Trump adjusted the national security tariffs on imports of steel, aluminum, and copper, lowering the tariff rates on derivative products made from these metals, streamlining compliance procedures, and preventing the declared value of imports from being understated.A senior Trump administration official said that, under a proclamation signed by Trump, the US would continue to maintain a 50% import tariff on imports of metal commodities such as steel, aluminum, and copper pursuant to Section 232 of the Trade Act of 1974, but would apply this rate to the price paid by US consumers. It is currently unclear how the selling price—and the resulting tariffs—would be determined.
16 hours ago
Barrick Confirms 2028 Production Target for Reko Diq Copper-Gold Project in Pakistan Despite Budget Concerns
16 hours ago
Barrick Confirms 2028 Production Target for Reko Diq Copper-Gold Project in Pakistan Despite Budget Concerns
Read More
Barrick Confirms 2028 Production Target for Reko Diq Copper-Gold Project in Pakistan Despite Budget Concerns
Barrick Confirms 2028 Production Target for Reko Diq Copper-Gold Project in Pakistan Despite Budget Concerns
Barrick Mining said that its Reko Diq copper-gold project in Pakistan still plans to achieve first production by the end of 2028.The project is a large-scale copper-gold project jointly developed by Barrick, the Pakistani government, and relevant joint venture partners, and is located in Balochistan, Pakistan. Although the company had previously warned that the capital budget previously disclosed for the project's two phases could face a significant increase, the 2028 production commencement target remained unchanged.
16 hours ago