Higher futures prices, ample supply pressure spot copper trades

SHANGHAI, Oct 22 (SMM) – The Shanghai spot copper market saw subdued trades on the morning of Tuesday October 22, on the back of elevated futures prices and sufficient supply.

Sellers of spot copper with October’s invoices tentatively firmed up premiums to 80-100 yuan/mt, against the SHFE November contract, in early trades this morning, as the issuance of invoices will be halted on system upgrading on October 25. However, premiums failed to hold firm and slipped to 70-90 yuan/mt amid poor trades. 

At noon of October 22, premiums of high-grade copper were at 80 yuan/mt, with that of standard-quality copper standing as low as 60 yuan/mt. Premiums of hydro-copper came in at 30-50 yuan/mt. 

SMM expects a greater share of cargoes with November’s invoices will widen the downside room in spot copper offers in the trading days ahead. 

On October 22, the SHFE November contract hovered around 47,100 yuan/mt and ended the morning trading session slightly higher on the day at 47,070 yuan/mt.

At noon on October 22, high-grade copper traded at 47,160-47,200 yuan/mt and standard-quality copper traded at 47,140-47,180 yuan/mt.