Nov 27(LTIT) –Brisk trades in Shanghai spot copper market buoyed premiums on the morning of Tuesday November 27. Spot copper was mostly offered at a premium of 90-140 yuan/mt over the SHFE December contract this morning. This compared with a premium of 60-130 yuan/mt on Monday November 26.

Lower prices of futures encouraged downstream purchases. Traders’ demand at a year-end also supported spot trades. These raised premiums of high-quality copper to 130-140 yuan/mt at noon, from 120 yuan/mt in early morning, and increased premiums of standard-quality copper to 90-100 yuan/mt, from 80 yuan/mt. Discounts of hydro copper also narrowed, to 80-40 yuan/mt at noon.

While trades were active this morning, market participants should monitor if cash flow issues across buyers at the end of a month weigh on offers, agency believe.

The SHFE 1812 contract hovered at lows around 49,200 yuan/mt after slumped below 49,000 yuan/mt overnight. It settled at 49,190 yuan/mt at the end of the morning trading session, down 140 yuan/mt from that time on Monday.

At noon on November 27, high-grade copper traded at 49,300-49,370 yuan/mt and standard-quality copper traded at 492,700-49,340 yuan/mt.