SHANGHAI, May 8 (SMM) – Sellers of spot copper cathode cut offers on the morning of Friday May 8 as they were keen to cash in while a further rally in copper futures sidelined downstream consumers.
Premiums were heard at 90-110 yuan/mt, against the SHFE May contract, as of Friday noon, compared with premiums of 120-140 yuan/mt in early trades this morning. Cargo holders continued to cut prices as trades failed to pick up when high-grade copper is priced at premiums of 130 yuan/mt with standard-grade copper at 110 yuan/mt.
Hydro-copper was sold at premiums as low as 60 yuan/mt due to overall reduced purchases from downstream consumers. The market saw oversupply and subdued transactions before the weekend.
The SHFE May copper contract extended its rally on Friday morning and ended the morning trading hours at 43,550 yuan/mt, up 1.47% on the day.
As of noon on May 8, trades of high-grade copper occurred at 43,570-43,630 yuan/mt with standard-quality copper trading at 43,550-43,610 yuan/mt.