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

Published: Feb 26, 2020 14:03

Save

Transactions in the spot copper market declined on the morning of February 26 in Shanghai as intensified concerns about the coronavirus impact depressed demand for risk assets and the enquires from...

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.

Market Commentary Copper

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

6 hours ago

Zambia to Reopen Key DRC Mineral Export Route After Rain Damage Disrupted Transport

Zambia’s Minister of Infrastructure said the main corridor for the DRC’s exports of copper, cobalt, and other minerals was expected to reopen after transport was disrupted by road damage.The DRC is Africa’s largest copper producer and the world’s second-largest copper producer by production. The DRC is also the world’s leading supplier of cobalt, with cobalt production accounting for more than 70% of global production, and most cobalt is exported together with other critical battery minerals.Kasumbalesa is the busiest transit point for the DRC’s metal cargo (mainly bound for China and the US). On Sunday, traffic at the crossing was suspended after heavy rains washed away parts of the road.So far, no mining company has reported that shipments of copper or cobalt have been impeded.

6 hours ago

Capstone Copper said on Monday that its Q4 revenue hit a record high, exceeding analysts’ expectations

Capstone Copper said on Monday that its Q4 revenue hit a record high, exceeding analysts’ expectations.The company’s adjusted Q4 earnings before interest, taxes, depreciation, and amortization (EBITDA) fell short of analysts’ expectations, despite record copper production.The company’s Q4 2025 copper production reached a record high, driven by improved operations at the Mantoverde and Mantos Blancos mines.Capstone Copper expects 2026 copper production to be 200,000-230,000 mt. It expects 2026 C1 cash cost to be $2.45-2.75 per pound.

6 hours ago

7 hours ago

Drone Attack on US Embassy in Riyadh; Israel Strikes Tehran and Beirut, Trump Promises Response Measures

The US Embassy in Riyadh, Saudi Arabia, was attacked by a drone on the 3rd local time, causing a fire and partial damage to the building. Meanwhile, the Israeli military announced that it was simultaneously carrying out airstrikes on Tehran, the capital of Iran, and Beirut, the capital of Lebanon, further escalating the intensity of the conflict in the Middle East. In response to the embassy attack, US President Trump said Washington would announce response measures “soon,” and revised his remarks to say that “there is no need to deploy ground troops.” On the same day, Trump claimed on social media that the US has “almost unlimited” ammunition reserves, and that “with these reserves alone, we can keep fighting forever and win very beautifully.”

7 hours ago