SHANGHAI, Jan. 15 (SMM) -- SHFE copper market advanced further after a higher open, and prices generally moved below the daily average. SHFE three-month copper prices rallied 1.5%, with positions down 6,924 lots, but still above 150,000 lots, and trading volume waned as well. Positions for the SHFE 1005 copper contract increased by 1,824 lots. SHFE three-month copper prices opened at RMB 61,010/mt, meeting resistance at RMB 61,240/mt, and with prices ending at RMB 60,750/mt, and able to find support at RMB 58,750/mt.
Spot transactions on Thursday made a stark contrast to conditions reported on Wednesday, with no buying interest reported at lower prices, since the lack of upward momentum for copper futures prices around RMB 61,000/mt depressed their purchasing interest. In the morning trade, premiums for high-quality copper were at positive RMB 80-100/mt, mainly for domestic goods. Premiums for standard-quality copper were around positive RMB 50/mt, but transactions were sluggish due to no price advantages. Moreover, the pressure from imported hydro-copper with discounts at negative RMB 50/mt forced standard-quality copper to offer discounts at negative 0-30/mt. Traded prices were generally in the RMB 60,500-60,700/mt range. Supply of imported goods dropped from a day earlier due to rising copper prices in the futures market. Market players took a cautious attitude towards outlook. SMM believes spot copper prices will fluctuate around RMB 60,000/mt in the near future.
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