Cautious consumers keep spot copper premiums from rising on lower futures prices

SHANGHAI, Jul 24 (SMM) – Spot copper trades improved in Shanghai on the morning of Wednesday July 24, with greater inquiries from downstream consumers after futures prices of copper eased. However, most buyers remained cautious about procurement, and this kept spot premiums from picking up. 

Lower futures prices prompted spot sellers to raise offers, to a premium of 30-80 yuan/mt, against the SHFE front-month August contract, from a premium of down to 10 yuan/mt in early trades. This sidelined traders, and pushed sellers to again lowered premiums to 50-60 yuan/mt for high-quality copper, and to 10 yuan/mt for standard-quality copper at noon. 

On Wednesday July 24, the SHFE August contract traded rangebound after overnight declines and ended the morning trading session at 46,970 yuan/mt, down 310 yuan/mt from that time on July 23.

At noon on Wednesday July 24, high-grade copper traded at 46,980-47,070 yuan/mt and standard-quality copper traded at 46,940-47,020 yuan/mt.