Spot copper premiums edged up as major traders stockpiled

SHANGHAI, May 6 (SMM) – Premiums of spot copper cathode edged higher in Shanghai on the morning of Wednesday May 6, from the level before the Labour Day holiday, as some top traders replenished inventories after the holiday. 

Transactions cooled near noon when premiums were lifted to 140 yuan/mt, against the SHFE May contract, for standard-grade copper, and to 150-160 yuan/mt for high-quality copper. This was compared with active purchases by traders in the early session with overall premiums of 130-140 yuan/mt. Hydro-copper was quoted at premiums of about 100 yuan/mt as of noon. 

Downstream consumers maintained on-demand purchases and mostly took a wait-and-watch stance as copper futures increased after opened Wednesday at lows. 

The SHFE May copper contract advanced steadily on Wednesday morning and ended the morning trading hours at 42,760 yuan/mt, down 0.37% on the day. 

As of noon on May 6, trades of high-grade copper occurred at 42,760-42,900 yuan/mt with standard-quality copper trading at 42,750-42,890 yuan/mt.