Inflow of seaborne copper weighed on spot copper premiums 

SHANGHAI, Jun 3 (SMM) – Premiums of spot copper cathode declined quickly on the morning of June 3 in Shanghai as downstream consumers and traders hesitated over greater availability of seaborne copper and further rally in copper futures. 

Spot copper sellers were keen to destock as futures prices extended increase. They cut spot premiums to 100 yuan/mt, against the SHFE June contract, for high-quality copper and to 90 yuan/mt for standard-grade copper as of noon, as compared with premiums of 130-140 yuan/mt in early trades this morning. 

Hydro-copper accounted for a great proportion of the overall copper imports, and this weighed on premiums of hydro-copper to 30 yuan/mt at noon from 70 yuan/mt earlier this morning. 

It will require some more time for the copper imports to be consumed in the market, and spot copper premiums may face further downward pressure in a buyers’ market. 

The SHFE June copper contract held onto gains from overnight and hovered around 45,000 yuan/mt this morning, ending the morning trading hours 0.58% higher on the day at 44,960 yuan/mt. 

As of noon on June 3, trades of high-grade copper occurred at 45,050-45,160 yuan/mt with standard-quality copper trading at 45,040-45,150 yuan/mt.