Chinese spot price of 1# refined copper (Cu:≥99.95%) jumped by another Yuan 1,079/tonne day on day to Yuan 68,516/tonne on January 12, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 1,130/tonne day on day to average at Yuan 68,580/tonne, running in the range of Yuan 68,480-68,680/tonne. Moreover, its premium fell by Yuan 10/tonne day on day to a discount of Yuan -10/tonne today.
Refined copper transactions in East China improved. The price spread between 01 contract and 02 contract of the Shanghai Futures Exchange shifted from backwardation to contango. Besides, the import loss expanded to Yuan 1,000/t, leading to a decrease in spot supply. Traders turned bullish after a consecutive hike in copper prices, which stimulated transactions. By contrast, delivery in North and South China remained light due to the price increase and the approach of the Spring Festival.
The trading volume of refined copper rods in China kept weak. Delivery of large-scale enterprises in East China fell to dozens of tonnes and transactions in South China decreased to less than 100 tonnes.
Secondary copper rod transactions in East and South China became active. Due to the sharp increase in copper prices and the stronger post-holiday market expectations, fabricators began receiving orders delivered after the holiday.
Copper scrap trading in China was mixed. Although copper prices jumped again, scrap holders in East China remained quiet and prepared to deliver after the holiday. On contrary, some processing enterprises in North China restocked due to the bullish view on copper prices.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com