SHANGHAI, May 17 (SMM) – Sufficient supplies and a rebound in futures prices grew destocking inclination across spot copper sellers in Shanghai on the morning of Friday May 17.
Spot copper offers stood mostly flat to a premium of 70 yuan/mt against the SHFE front-month June contract this morning, compared with a premium up to 120 yuan/mt on the previous trading day on Thursday May 16.
Downstream purchases picked up after sellers lowered premiums for high-quality copper, to 50-60 yuan/mt against the SHFE 1906 contract, from a premium of 70-80 yuan/mt in early trades this morning.
Offers of standard-quality copper dropped slightly by some 10 yuan/mt, standing flat against the SHFE June contract at noon. Discounts of hydro-copper widened to 70-50 yuan/mt around noon.
The selloff is likely to extend into next week as speculative demand waned. Discount offers are expected next week.
On Friday May 17, the SHFE 1906 contract ended at 47,780 yuan/mt at the end of the morning trading session, up 50 yuan/mt from that time on May 16.
At noon on Friday May 17, high-grade copper traded at 47,880-47,970 yuan/mt and standard-quality copper traded at 47,830-47,910 yuan/mt.