SHANGHAI, Mar 31 (SMM) – Trades in the spot copper market in Shanghai were active with spot premiums rising on the morning of March 31 as upbeat data on China’s manufacturing activities improved market sentiment and led to a rebound in copper futures.
On Tuesday’s morning, spot premiums climbed quickly to 120 yuan/mt, over the SHFE April contract, for standard-quality copper and to 130 yuan/mt for high-grade copper, from premiums of 100 yuan/mt in early session. At noon, quotes stabilised at premiums of 120-130 yuan/mt with purchases cooling. Some traders lifted premiums for high-quality copper to 140 yuan/mt, but no deals were struck.
Quotes of hydro-copper also moved higher with that of copper cathode, rising to a premium of 70-90 yuan/mt as of noon on Tuesday.
Traders, rather than downstream producers, accounted for majority of the transactions today. Elevated spot premiums and futures prices began to weigh on spot trades near noon.
The SHFE 2004 copper contract moved higher and returned above 39,300 yuan/mt, ending the morning trading hours of Tuesday 1.81% higher at 39,340 yuan/mt.
As of noon on March 31, trades of high-grade copper occurred at 39,390-39,500 yuan/mt with standard-quality copper trading at 39,370-39,490 yuan/mt.
