SHANGHAI, Dec 25 (SMM) – Transactions in Shanghai spot copper market weakened significantly on the morning of December 25 as robust futures prices sidelined downstream buyers and traders withdrew from the market for the year-end financial settlement.
With the end of the delivery for annual long-term contracts, demand for cargoes with December’s invoices waned, prompting sellers to add discounts to 100-70 yuan/mt as of noon, against the SHFE January 2020 contract, from discounts of 70-50 yuan/mt in early trades this morning.
Discounts of hydro-copper with December’s invoices deepened to 130 yuan/mt at noon.
While more cargoes with January’s invoices were available in the market, sluggish demand widened the discounts to 140-100 yuan/mt at noon, from 120-80 yuan/mt earlier this morning.
SMM expects spot copper trades to remain muted in the run-up to Chinese New Year holiday.
On December 25, the SHFE January contract extended its increase and ended the morning trading session 0.55% higher on the day at 49,400 yuan/mt.
At noon on December 25, high-grade copper traded at 49,220-49,340 yuan/mt and standard-quality copper traded at 49,200-49,320 yuan/mt.