Spot copper was mostly offered at a premium of 90-140 yuan/mt over the SHFE 1809 contract in Shanghai on Wednesday August 29. This compared with a premium of 30-90 yuan/mt on August 28.
Brisk trades prompted traders to raise premiums of standard-quality copper from 90 yuan/mt early in the morning, to above 100 yuan/mt at 10:00 CST, and to raise premiums of high-quality products from around 100 yuan/mt to 130-140 yuan/mt.
While downstream consumers hesitated over such spot premiums when prices of futures surged after 11:00 CST, sellers lowered premiums to levels in the early morning, we learned.
Hydro-copper, offered flat to a premium of 40 yuan/mt over SHFE 1809 contract, saw much interest.
The SHFE 1809 contract broke pressure at the 40-day moving average, and stood above 49,000 yuan/mt after 11:00 CST. It closed at 49,070 yuan/mt at the end of the morning trading session, up 500 yuan/mt from that time on Tuesday.
At noon, high-grade copper traded at 49,020-49,140 yuan/mt and standard-quality copper traded at 49,000-49,120 yuan/mt.