SHANGHAI, Aug 21 (SMM) – Lower futures prices of copper encouraged downstream purchases of spot products on the morning of Wednesday August 21 in Shanghai. Procurement by traders for the delivery of long-term contracts remained dominant in the spot market.
Brisk trades drove up premiums of high-quality copper to 80-90 yuan/mt, against the SHFE front-month September contract at noon, compared with premiums of 70 yuan/mt in early trades this morning. Premiums of standard-quality copper climbed from 50 yuan/mt to 60-70 yuan/mt during the same period. Downstream stockpiling and supply shortage pulled up premiums of hydro-copper to 30-40 yuan/mt at noon.
Transaction activity was less active at noon as premiums expanded.
On Wednesday August 21, the SHFE September hovered rangebound after overnight declines and ended the morning trading session at 46,370 yuan/mt, down 270 yuan/mt from that time on August 20.
At noon on August 21, high-grade copper traded at 46,380-46,430 yuan/mt and standard-quality copper traded at 46,360-46,410 yuan/mt.