SHANGHAI, Jul 4 (SMM) – A rebound in futures prices of copper and ample inventories sidelined spot consumers on the morning of Thursday July 4, after they restocked at lower prices on Wednesday July 3.
Spot sellers cut premiums to 80 yuan/mt, against the SHFE front-month July contract, at noon of July 4 as downstream buyers hesitated over higher premiums of 90-150 yuan/mt in early trades. But this barely improved transactions as traders and downstream consumers held ample inventories after stockpiling on July 3.
Relatively lower supply of high-grade copper kept its premiums firm at 140 yuan/mt at noon of July 4. Shortage of hydro-copper even bolstered offers, up to a premium of 10 yuan/mt.
SMM expects arrivals of seaborne copper will continue to expand supplies and weigh on spot premiums in the short term.
On Thursday July 4, the SHFE 1907 contract rallied a little and ended at 46,390 yuan/mt at the end of the morning trading session, up 90 yuan/mt from that time on July 3.
At noon on Thursday July 4, high-grade copper traded at 46,540-46,630 yuan/mt and standard-quality copper traded at 46,490-46,550 yuan/mt.