Spot copper was mostly offered at a discount of 20 yuan/mt to a premium of 30 yuan/mt over the SHFE 1807 contract in Shanghai on Thursday July 5. This compared with a discount of 60-0 yuan/mt on Wednesday amid falling futures prices.
Transactions cooled from Wednesday as the market grew cautious on declining copper prices.
Offers from sellers fell as a result, to a discount of 20-10 yuan/mt for standard-quality copper before noon, from flat over the SHFE 1807 contract earlier this morning. Offers for high-grade copper also decreased from a premium of 30 yuan/mt to 10-20 yuan/mt during the day.
The SHFE 1807 contract hovered around 49,650 yuan/mt in the morning trading session and tumbled to a low of 49,120 yuan/mt in the afternoon. It lost over 1,000 yuan/mt from the previous day.
As copper prices fall, spot premiums are likely to see more upward room on Friday July 6, SMM believes.
At noon, high-grade copper traded at 49,620-49,700 yuan/mt and standard-quality copper traded at 49,600-49,680 yuan/mt.