Spot copper trades weaken as consumers hesitate over price fluctuations

SHANGHAI, May 28 (SMM) – Traders and downstream buyers held off purchases in the Shanghai spot copper market on the morning of Tuesday May 28, as fluctuating prices of SHFE copper kept the market cautious. 

High-quality copper lost its appeal to downstream consumers. This, together with sufficient supplies, lowered its premiums to 30 yuan/mt at noon. This compared with a premium of 10-20 yuan/mt for standard-quality copper. 

Spot copper offers stood mostly flat to a premium of 50 yuan/mt against the SHFE front-month June contract this morning, down from premiums up to 60 yuan/mt on the previous trading day on Monday May 27. 

Shortages of hydro-copper kept its offers at a discount of 70-40 yuan/mt on the morning of May 28, narrowing from a discount of 80-60 yuan/mt in the previous morning. 

On Tuesday May 28, the SHFE 1906 contract rebounded and ended at 47,210 yuan/mt at the end of the morning trading session, up 100 yuan/mt from that time on May 27.

At noon on Tuesday May 28, high-grade copper traded at 47,220-47,270 yuan/mt and standard-quality copper traded at 47,190-47,240 yuan/mt.