Spot copper trades weakened on coronavirus fears, thinned enquires at month-end

SHANGHAI, Feb 26 (SMM) – Transactions in the spot copper market declined on the morning of Wednesday February 26 in Shanghai as intensified concerns about the coronavirus impact depressed demand for risk assets and the enquires from downstream buyers waned at month-end. 

There remained some demand for spot copper with February’s invoices, whose offers held steady at discounts of 170-140 yuan/mt, against the SHFE March contract, in early trades this morning. At noon on Wednesday, discounts of high-quality copper stood mostly at 160 yuan/mt with discounts of standard-grade copper at 170 yuan/mt. Discounts of hydro-copper expanded to 260 yuan/mt as of noon on Wednesday. 

Cargoes with invoices for March, however, attracted limited buying interest, even as the discounts widened to 190 yuan/mt for standard-grade copper and to 280 yuan/mt for hydro-copper. 

SMM expects spot discounts to stay at high levels till end-February as sellers remain keen to clear inventories while consumers stood on the sidelines. 

On February 26, the SHFE 2003 contract extended its decline from the previous session and ended the morning trading session 0.33% lower at 45,540 yuan/mt. 

At noon on February 26, high-grade copper traded at 45,340-45,420 yuan/mt and standard-quality copper traded at 45,320-45,400 yuan/mt.