SHANGHAI, Aug. 21 (SMM) – SHFE 1510 copper started with a large negative gap at RMB 38,480/mt during Wednesday night session and soared to RMB 38,690/mt at one point. Then the contract dipped to RMB 38,330/mt due to slipping LME copper but later the red metal reversed losses and finished RMB 150/mt higher at RMB 38,610/mt, gaining 0.39%. Positions were up 936 with positions totaling 197,000 lots.
The most traded contract moved around RMB 38,530/mt during Thursday trading hours and then drifted lower to RMB 38,450/mt. In the afternoon business, the red metal once touched RMB 38,830/mt but later fell back responding to China’s falling stocks and exit of longs, to close at RMB 38,620/mt, gaining RMB 160/mt or 0.42%. Positions decreased 4,000 to 212,376 and positions declined 80,000 lots. SHFE copper outperformed LME copper, pushing SHFE/LME copper price ratio up further.
SHFE copper prices posted a modest growth on Thursday while spot prices held flat Aug. 19 in Shanghai. Speculators moved goods out to book profits and high-quality copper accounted for a large portion in market. Price offers of standard-quality copper and hydro-copper stayed firm. Price gap between various branded copper was small. Downstream buyers still purchased on need. Thus, trades were left muted in market.
Spot copper quoted at premiums of RMB 0-40/mt over SHFE 1509 copper. Traded prices were RMB 38,670-38,800/mt for standard-quality copper and RMB 38,690-38,830/mt for high-quality copper.