SHANGHAI, Apr 24 (SMM) – SMM reported that #1 copper cathode traded with premiums of 30-60 yuan/mt against SHFE 2304 copper contract on April 17, and with premiums of 0-60 yuan/mt over the contract last Friday April 21. Selloffs in the middle of the week lowered spot premiums to zero.
As the copper prices fell below 69,000 yuan/mt, the downstream buying interest picked up, stopping declines in the spot quotes.
According to SMM statistics, the copper inventories in Shanghai dropped 8,200 mt to 103,700 mt. Any declines in copper prices will boost downstream purchasing ahead of Labour Day holidays, bolstering spot quotes. Traders, however, will refrain from restocking for the holiday, thus spot quotes will have downside risks.
Meanwhile, this week is the last week to deliver cargoes under long-term contracts. Spot transactions will be lukewarm.
