SHANGHAI, Jan. 11 (SMM) -- On Friday, SHFE copper market moved downwards after opening lower, continuing the profit-taking from yesterday. SHFE 1004 copper contract dropped below RMB 61,000/mt after opening, weakening further to less than RMB 60,000/mt, and rebounded slightly after falling to RMB 59,680/mt. In the afternoon session, prices moved up from short covering, with prices closing at RMB 60,690/mt, and the daily price declines were less than 2%. Positions dropped by 3,932 lots, with turnover rate of 342%, and trading value reached to RMB 161.42 billion. Positions for SHFE 1004 copper contract remained above 150,000 lots. Although SHFE current month copper contract fell below RMB 60,000/mt, to as low as RMB 59,750/mt, prices ended at RMB 60,600/mt, with the daily price decline of 1.59%, and prices generally moved in the RMB 60,000-60,500/mt range.

The spot copper market reported premiums along with falling futures market, with levels of positive RMB 0-50/mt, reaching as high as positive RMB 50-150/mt. Copper prices fell to RMB 60,100-60,400/mt from RMB 60,300-60,500/mt at noon, and rebounded in the afternoon business. Spot copper prices secured its position at RMB 60,000/mt at the first weekend of 2010. Domestic high-quality goods reported premiums at first, and then domestic standard-quality goods followed suit. Contracts of forward-month for hedging flooded the market due to strong profits, and imported goods were reported to be traded at RMB 0/mt or slightly premiums. Although hydro-copper reported small discounts, selling interest remained strong, with sell-offs reported. Market reported inquiries, but sellers represented higher interest in moving goods, and buyers were cautious with regard to purchases in view of falling prices. Strong price gains around the New Year holiday depressed downstream buying interest. The round of price declines was in line with market expectations, but the pace of declines was beyond estimations similar to previous strong gains. If prices are able to finish corrections in the short term, strong demand at the beginning of the year is believed to support copper prices.

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