SHANGHAI, Apr 27 (SMM) – Premiums of spot copper cathode in Shanghai edged lower on the morning of April 27 as sellers showed more cash-in inclination following the delivery for long-term contracts and a rally in copper futures kept buyers hesitated on the backdrop of ample spot supplies.
Relatively sufficient supply of standard-quality copper sent its premiums to 130 yuan/mt, against the SHFE May contract, after a handful of deals occurring at premiums of 140-150 yuan/mt in early trades. Premiums of high-quality copper slipped to 150-160 yuan/mt as of noon, from as high as 170 yuan/mt earlier this morning.
Hydro copper was quoted at premiums of 90 yuan/mt at noon, compared with premiums of 100-110 yuan/mt in early session.
SMM expects the spot copper premiums unlikely to hold firm at current levels if the futures prices continue to strengthen before May.
The SHFE May copper contract gained more than 700 yuan/mt on Monday morning and ended the morning trading hours nearly 2% higher on the day at 42,750 yuan/mt.
As of noon on April 27, trades of high-grade copper occurred at 42,710-43,020 yuan/mt with standard-quality copper trading at 42,700-43,000 yuan/mt.
