SHANGHAI, Jan. 18 (SMM) -- On Friday, SHFE copper market opened slightly lower. SHFE three-month copper contract prices opened at RMB 60,710/mt, with stable market movements during the most time of morning trade, and prices started to fall before the end of the morning session, dropping to the daily low level of RMB 60,170/mt before the beginning of the afternoon business. SHFE three-month copper prices finally closed at RMB 60,510/mt despite of small increases. Positions increased by 6,918 lots.
The spot copper market remained weak on Friday. In the morning market, premiums for domestic high-quality copper were at positive RMB 100/mt, with prices generally moving above RMB 60,600/mt. Domestic standard-quality copper followed suit, with premiums at positive RMB 50/mt. Traded prices were generally around RMB 60,500/mt. Imported copper continued to dominate the market supply, with prices more flexible than domestic products, and premiums for high-quality imported copper reached as high as positive RMB 50/mt when copper prices advanced. Hydro-copper reported deals at discounts of negative RMB 100-50/mt. Copper prices continued to drop after the afternoon trade began. Downstream producers showed low buying interest due to uncertainties towards price trends, undermining the support for spot premiums above positive RMB 100/mt, leaving premiums for high-quality copper at positive RMB 50/mt. Traded prices were in the RMB 60,100-60,250/mt range.
Continuous price fluctuations depressed purchasing interest. Despite of optimism towards long-term copper prices, more market players believe copper prices will experience corrections in the short run. SMM believes spot market will report discounts from premiums along with the end of delivery date in the coming week, and copper prices will continue to fluctuate, if no solid news is available.
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