SHANGHAI, Dec 17 (SMM) – Spot copper offers failed to hold steady at premiums on the morning of December 17 in Shanghai, over the SHFE January 2020 contract, as downstream demand came less strong than expected on the back of elevated copper futures.
The SHFE copper January 2020 contract hovered around 49,000 yuan/mt and ended Tuesday’s morning trading session 0.41% higher at 48,990 yuan/mt.
Low inventories prompted cargo holders to firm up offers, up to a premium of 10 yuan/mt in early session this morning, but stagnated trades weighed offers, down to discounts of 40 yuan/mt at noon.
At noon of Tuesday, quotes of copper cathode stood at a discount of 40 yuan/mt to flat over the SHFE January contract. Discounts of hydro-copper grew to 100-80 yuan/mt.
The slide in spot offers was also capped as sellers were unwilling to discharge at larger discounts, during the last period of the year for the delivery of annual long-term contracts.
At noon on December 17, high-grade copper traded at 48,940-49,010 yuan/mt and standard-quality copper traded at 48,920-49,000 yuan/mt.