SHANGHAI, Feb 17 (SMM) – Premiums of spot copper declined in Shanghai on the morning of Monday February 17 as cargo holders were keen to destock amid sufficient supplies. 

The spot copper market may continue to see oversupply in the near term on expectations of cargo inflow after the delivery of the SHFE February contract and a slow recovery of downstream demand on the coronavirus impact. 

As of noon on Monday, premiums of high-quality copper slipped to 40-50 yuan/mt, over the SHFE February contract, from 70-80 yuan/mt in early session this morning. Premiums of standard-quality copper fell from 40-50 yuan/mt to 10-30 yuan/mt as of noon. Discounts of hydro-copper, meanwhile, deepened to 70-50 yuan/mt at noon, from 10-20 yuan/mt in early trades. 

Most sellers turned to provide offers against the SHFE March contract, as the February contract will finish its last trading day today. At noon on Monday, offers of high-grade copper stood at a discount of 170 yuan/mt, over the SHFE March contract, with discounts of standard-grade copper widening to 190 yuan/mt. 

On February 17, the SHFE February extended a price rally, climbing 0.53% to end the morning trading session at 45,880 yuan/mt. 

At noon on February 17, high-grade copper traded at 45,720-45,980 yuan/mt and standard-quality copper traded at 45,700-45,960 yuan/mt.