Limited trades, destocking weigh on spot copper premiums

SHANGHAI, Oct 8 (SMM) – Spot copper premiums slipped on the morning of Tuesday October 8 in Shanghai as downstream buyers hesitated over high premiums and cargo holders tended to clear inventories. 

Sellers reduced premiums of high-quality copper to 110 yuan/mt at noon, against the SHFE October contract, from as high as 190 yuan/mt in early trades this morning. Premiums of standard-grade copper fell to a low of 90 yuan/mt, from more than 150 yuan/mt during this morning. 

By the noon on Tuesday October 8, premiums of spot copper stood at 90-150 yuan/mt, compared with 150-190 yuan/mt earlier this session, but this failed to significantly improve purchases. 

Greater arrivals of spot copper over the holiday and fluctuated futures prices are likely to keep consumers on the sideline and continue to weigh on premiums in the trading days ahead. 

On October 8, the SHFE October contract hovered below the 47,000 yuan/mt level and ended the morning trading session at 46,920 yuan/mt, down 0.47% from that time on September 30.

At noon on October 8, high-grade copper traded at 47,000-47,070 yuan/mt and standard-quality copper traded at 46,980-47,040 yuan/mt.