Spot copper was mostly offered at a discount of 90-40 yuan/mt over the SHFE 1808 contract in Shanghai on Wednesday July 18. Tight supplies narrowed offers from a discount of 140-80 yuan/mt on Tuesday July 17.
Transaction volumes rose from Tuesday, buoyed by traders’ enthusiasm. There were no inflows of imported cargo into the market.
Discounts from sellers narrowed as a result, to a discount of 60-50 yuan/mt for standard-quality copper before noon, from a discount of 90 yuan/mt over the SHFE 1808 contract in the morning. Offers for high-grade copper also decreased from a discount of 60 yuan/mt to 40 yuan/mt during the day.
Discounts are expected to narrow further on Thursday July 19 amid a seller’s market, we believed.
The SHFE 1808 contract hovered around 48,500 yuan/mt this morning and closed at 48,560 yuan/mt before noon, 180 yuan/mt lower from that time on Tuesday. It broke support at 48,300 yuan/mt and consolidated below that level in the afternoon, we learned.
At noon, high-grade copper traded at 48,430-48,540 yuan/mt and standard-quality copper traded at 48,400-48,500 yuan/mt.