Chinese spot price of 1# refined copper (Cu:≥99.95%) rose by Yuan 45/tonne day on day to Yuan 69,492/tonne on February 1, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 30/tonne day on day to average at Yuan 69,525/tonne, running in the range of Yuan 69,450-69,600/tonne. Moreover, its discount narrowed by Yuan 10 day on day to Yuan 45/tonne today.
Refined copper transactions in East and South China improved today. The price spread of a contango structure between Cu2302 and Cu2303 contract of the Shanghai Futures Exchange expanded to Yuan 100/t. With the restarts of downstream producers, price inquiries increased and the market turnover improved. However, spot premiums in China are expected to remain at discounts with the accumulation of social inventory during the holiday. Besides, with the approach of the Federal interest rate meeting, buyers showed hesitations and kept cautious. By contrast, refined copper transactions in North China remained light as part of fabricators were still on holiday.
The trading volume of refined copper rods in China kept weak. As copper prices fluctuated at a high range, end-users prepared to purchase after price retreatments. The delivery in East China was less than a hundred tonnes and transactions in North and South China were sluggish.
Secondary copper rod transactions in China improved compared with yesterday. Deliveries between traders and second copper rod producers dominated the market today with volumes of a hundred tonnes.
Both copper scrap holders and processing enterprises were preparing to restart business and production. The trading volume is expected to recover after Lantern Festival (February 5).
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com