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Spot copper trades subdued on futures price rally, invoice system upgrading 
Oct 24,2019 14:54CST
price review forecast
Source:SMM
Demand weakened on the last trading day for cargoes with Oct’s invoices before the VAT invoice system upgrading

SHANGHAI, Oct 24 (SMM) – The Shanghai spot copper market saw overall sluggish trades on the morning of October 24 as futures prices of copper rallied amid supply concerns after protests in top copper producer Chile intensified.

Most domestic traders have finished delivery of long-term contracts and held sufficient stockpiles. This, coupled with weakened demand on the last trading day for cargoes with October’s invoices before the value-added tax invoice system upgrading, was also the reason behind subdued trades.  

Trades started to pick up slightly after cash-in inclination drove sellers to cut premiums to zero for standard-quality copper, and to 30 yuan/mt for high-grade products, against the SHFE November contract. These compared with premiums as high as 60 yuan/mt in early trades. 

At noon, quotes of hydro-copper slipped to a discount of 20 yuan/mt to flat over the SHFE November contract. 

Trades occurred mostly around cargoes with November’s invoices, whose prices remained in discounts of about 30 yuan/mt over products with October’s invoices. 

On October 24, the SHFE November contract stabilised after overnight gain and ended the morning trading session up 0.68% at 47,300 yuan/mt.

At noon on October 24, high-grade copper traded at 47,330-47,380 yuan/mt and standard-quality copper traded at 47,300-47,350 yuan/mt.

Market commentary
Futures movement
Spot copper

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