SHANGHAI, Dec 10 (SMM) – Shanghai copper market saw a steep decline in spot premiums on the morning of December 10 as elevated futures prices sidelined downstream consumers and prompted sellers to cut offers.
At noon of Tuesday, premiums of standard-quality copper slipped to 10-20 yuan/mt, over the SHFE December contract, with premiums of high-grade copper at around 30 yuan/mt. These compared to 80-100 yuan/mt in early trades this morning.
Offers of hydro-copper fell to a discount of 20 yuan/mt at noon.
SMM sees further downsides in spot offers, which may flip to discounts across the board, as the current decline in premiums failed to attract buying interest from traders and speculative buyers given the jump of nearly 1,000 yuan/mt in copper futures since Monday.
On Tuesday December 10, the SHFE December contract rose to around 48,400 yuan/mt as longs loaded up their position amid optimism about demand. It ended the morning trading session up 1.02% at 48,380 yuan/mt.
At noon on December 10, high-grade copper traded at 48,400-48,460 yuan/mt and standard-quality copper traded at 48,380-48,440 yuan/mt.