Spot copper premiums in Shanghai firm on improved purchases

Published: Jul 6, 2020 15:03

Save

Premiums of spot copper cathode moved steadily higher in Shanghai on the morning of Monday July 6 as consumers favoured low-priced cargoes and made enquiries actively, while Shanghai copper opened at low levels on Monday.

SHANGHAI, Jul 6 (SMM) – Premiums of spot copper cathode moved steadily higher in Shanghai on the morning of Monday July 6 as consumers favoured low-priced cargoes and made enquiries actively, while Shanghai copper opened at low levels on Monday.

Trades of standard-grade copper were brisk at premiums of 10-20 yuan/mt, against the SHFE July contract in early session. This added to sellers confidence in spot copper prices, prompting them to lift premiums to 30 yuan/mt near noon. High-quality copper was priced at premiums of 30-40 yuan/mt as of noon, with transactions not as active as that of standard-quality copper.

Meanwhile, discounts of hydro-copper continued to expand, to 70-60 yuan/mt from 50-40 yuan/mt during the morning trades, due to continued sufficient supplies.

The SHFE July copper contract opened at low levels of 49,060 yuan/mt on Monday but traded higher during the day, ending the morning trading session down 0.12% on the day at 49,140 yuan/mt.

As of noon on July 6, trades of high-grade copper occurred at 49,020-49,220 yuan/mt with standard-quality copper trading at 49,010-49,210 yuan/mt.

Market commentary Futures movement Spot 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 for 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

5 mins ago

【Flash | A Perfect Storm of Supply Risks Keeps Molybdenum Oxide Near Recent Highs】

SMM learned that overseas mine production cuts, extreme weather in South America, and declining ore grades and recovery rates were intensively discussed during a recent industry association meeting. These concerns strengthened expectations of tighter overseas molybdenum supply, stimulated some buying and pushed molybdenum oxide prices to around $34/lb Mo. Supply-side expectations continue to support prices, while some mine production, grade and recovery issues may not improve materially until around 2028. China’s market also remains firm, but elevated prices are discouraging chasing. Well-funded buyers, low-inventory users and producers with firm orders continue to purchase as needed, while processors mainly restock to maintain production.

5 mins ago

1 hour ago

China's copper import arbitrage recovers as spot copper premium rises rapidly

Recently, LME copper inventories increased, the futures-spot structure shifted, and China's import arbitrage continued to climb. Today, downstream demand for imported copper in the Shanghai region clearly recovered, while supply was relatively tight. In the morning session, cargoes at Lingang were almost swept clean, and the spot copper premium rose rapidly.

1 hour ago

LME copper inventories continue to increase

The recent COMEX-LME copper price spread has narrowed, with the COMEX copper 2610 and LME 3M contract spread inverting, indicating a decline in the US pull effect on copper. On September 14, LME copper inventories stood at 249,225 mt, up 6,325 mt from the previous day. With the continued increase in LME copper inventories recently, the LME nearby contracts have shifted to a Contango structure and widened.

1 hour ago