Cautious buyers on higher futures prices depress spot copper trades

Published: Jul 19, 2019 14:12

Save

Cash-in inclination drove spot sellers to offer discounts for standard-quality copper, the first time since Jul

SHANGHAI, Jul 19 (SMM) – Spot copper trades thinned on the morning of Friday July 19 in Shanghai as rising futures prices kept speculative buyers cautious and as downstream consumption failed to pick up.

Cash-in inclination drove spot sellers to offer discounts for standard-quality copper, the first time since July. At noon of July 19, standard-grade copper was offered at a discount of 20 yuan/mt, over the SHFE front-month August contract, with further bargaining room in negotiations.

Offers of high-quality copper also weakened to a premium of 40 yuan/mt at noon, compared with a premium of 70 yuan/mt in early trades. Discounts of hydro-copper expanded to 60-30 yuan/mt at noon.

On Friday July 19, the SHFE August contract rallied on a lower US dollar and ended the morning trading session at 47,650 yuan/mt, up 920 yuan/mt from that time on July 18.

At noon on Friday July 19, high-grade copper traded at 47,600-47,780 yuan/mt and standard-quality copper traded at 47,540-47,740 yuan/mt.

Market commentary Futures movement Spot copper

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

19 hours ago

Fed's Waller: Ready to Cut Rates if Labor Market Weakens, Cautious on Inflation Risks

US Fed Governor Christopher Waller said on Friday that if signs of weakness emerged in the labor market, he would again support an interest rate cut later this year, while remaining alert to the inflationary pressures that the current geopolitical situation may bring.Waller noted that a closure of the Strait of Hormuz signaled greater inflationary pressure, and that higher oil prices could ultimately affect core inflation. He stressed that the current cautious stance did not mean there would be no action for the rest of the year.His remarks sent an important signal to the market—that the window for an interest rate cut had not closed, provided that employment data showed clear weakening.

19 hours ago

IRGC: US Carrier Ford's Deployment and Withdrawal Reflects "Desperate and Humiliating" Reality for US, Israel

According to Xinhua News Agency, the Islamic Republic News Agency reported on the 20th that the Islamic Revolutionary Guard Corps issued a statement saying that, despite extensive attention from Western media, the US Navy aircraft carrier Ford was deployed to the West Asia region but failed to provide support for US forces there and instead withdrew from the battlefield, reflecting the “desperate and humiliating” reality facing the US and Israel.

19 hours ago

US Treasury Secretary Bessent: SPR Release Complexity and Limits Amid Oil Price Stabilization Efforts

US Treasury Secretary Bessent claimed that the Strategic Petroleum Reserve (SPR) could be tapped again to suppress oil prices, but the reality was far more complex than this statement suggested—the reserve level was already close to the statutory minimum, and physical safety constraints left extremely limited room for any further release.Last week, Bessent said that the US had participated in the largest internationally coordinated SPR release operation to date, totaling 400 million barrels, and warned that, if necessary, the US could once again unilaterally release reserves to stabilize oil prices.

19 hours ago