Spot copper was mostly offered at a discount of 90-50 yuan/mt over the SHFE 1808 contract in Shanghai on Thursday July 26. This compared with a discount of 50 yuan/mt to a premium of 20 yuan/mt on July 25.
Sellers grew keener to destock as supplies continued to grow. However, transaction activities weakened as most long-term supply agreements have been fulfilled.
We believes that some traders may be keen to purchase if discounts widened to 100 yuan/mt on July 27.
At the end of the morning trading session on on July 26, discounts of high-quality copper grew to 60 yuan/mt, from 40-30 yuan/mt, and that of standard-quality cargoes grew to 90-80 yuan/mt, from 70 yuan/mt. Offers for hydro-copper were also lowered to a discount of 140 yuan/mt from 90-80 yuan/mt on July 25.
The SHFE 1808 contract met pressure at 50,000 yuan/mt on July 26 and closed at 49,940 yuan/mt at the end of morning trading session, up 30 yuan/mt from the same time on July 25.
At noon, high-grade copper traded at 49,870-49,990 yuan/mt and standard-quality copper traded at 49,850-49,950 yuan/mt.