SHANGHAI, Apr 3 (SMM) – Transactions in the spot copper market in Shanghai were brisk on the morning of Wednesday April 3 and this lifted premiums. Traders accounted for most of the transactions, with downstream consumption also picking up, as futures prices slowed gains.
Import losses continued to limit seaborne arrivals, and this also expanded spot premiums of domestic brands.
This morning, offers stood at a premium of 40-180 yuan/mt against the SHFE front-month April contract, compared with offers of a discount of 10 yuan/mt to a premium of 120 yuan/mt in the previous morning.
Compared with early trades, premiums of high-quality copper increased by some 30 yuan/mt to 170-180 yuan/mt around noon. Sellers of standard-quality copper also raised offers to a premium of 50-60 yuan/mt, from a premium of 40 yuan/mt in the early morning. Discounts of hydro-copper narrowed to 60-40 yuan/mt at noon.
Transactions were brisk in the first trading session for the morning, and slowed down around noon as premiums rose. High-quality copper accounted for a smaller share in overall supplies in the market.
On the morning of April 3, the SHFE 1904 contract traded rangebound around 49,100 yuan/mt and closed at 49,120 yuan/mt at the end of the morning trading session, flat from that time on April 2.
At noon on April 3, high-grade copper traded at 49,200-49,300 yuan/mt and standard-quality copper traded at 49,100-49,180 yuan/mt.