SHANGHAI, Jul 22 (SMM) – Premiums of spot copper cathode declined quickly in Shanghai on the morning of Wednesday July 22, as sellers stepped up destocking to lock in profits on the second straight day of rally in copper futures. Downstream consumers were cautious about restocking amid rising futures.
Enquires and trades started to pick up after premiums of standard-grade copper slipped to 30 yuan/mt, over the SHFE August contract, from 50-60 yuan/mt in early trades this morning, with premiums of high-quality copper falling to 100 yuan/mt, from 110-130 yuan/mt.
As of noon on July 22, standard-grade copper was priced at premiums of 20 yuan/mt. High-grade copper saw limited downward room in prices, with trades occurring at premiums of 80-100 yuan/mt.
Offers of hydro copper diverged with the discounts for low-quality products widening to as much as nearly 100 yuan/mt. The average discount of hydro copper came in at 60 yuan/mt as of noon.
Purchases under long-term contracts accounted for most of the transactions today in Shanghai, SMM learned.
The SHFE August copper contract has gained more than 1,000 yuan/mt over the past two days amid a broad rally in base metals, ending the Wednesday morning trading session up 1.41% on the day at 52,600 yuan/mt.
As of noon on July 22, trades of high-grade copper occurred at 52,560-52,700 yuan/mt with standard-quality copper trading at 52,500-52,630 yuan/mt.
