SHANGHAI, Jan. 7 (SMM) -- On Wednesday, SHFE copper market advanced further from a higher open, hitting a new high, and with a daily price increase of more than 2%. Transactions were brisk. Positions for SHFE 1004 copper contract increased by 11,948 lots, and trading value exceeded RMB 97.3 billion, with prices pointing to RMB 62,000/mt, and prices finally closed at RMB 61,630/mt. Prices of forward-month contracts far surpassed RMB 62,000/mt, and could find support at RMB 61,000/mt. SHFE current month copper contract reached as high as RMB 61,500/mt from a opening level of RMB 60,600/mt, and with prices ending higher at RMB 61,450/mt.
The spot market reported rising movements as well. Although spot discounts were in the negative RMB 150-250/mt range in the morning trade, trading volume was limited. Traded prices were in the RMB 60,700-60,900/mt range before prices soared. Offers heard in the spot market were sparse after 11:00 am when SHFE copper prices soared. Market supply improved slightly before the end of trade at noon thanks to a brief calm performance, while spot discounts narrowed further to the negative RMB 120-220/mt. As a result, spot traded prices advanced to RMB 50,900-61,000/mt, and jumped to RMB 61,100-61,300/mt in the afternoon business. Supply in the spot market was unavailable, since cargo-holders were unwilling to move goods. Spot discounts will likely narrow further on Tuesday. However, the price increases of RMB 1,000/mt on Wednesday depressed downstream purchasing interest, and buyers generally took a wait-and-see attitude in view of soaring copper prices.
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