SHANGHAI, Jan. 20 (SMM) -- On Tuesday, copper prices on the SHFE market moved up following a higher open, and the rising trend continued despite of slight declines during the session. SHFE 1005 copper contract prices opened at RMB 61,220/mt and closed at RMB 61,790, up RMB 1,150/mt or 1.90% from a day earlier, returning the 5 and 10-day moving average. Spot discounts experienced increases, with levels reported at negative RMB 220-120/mt in the morning session. Trading sentiment was lackluster, since rising copper prices depressed downstream demand. The cautious purchasing attitude weighed on copper prices, causing spot discounts to expand further to the negative 250-120/mt. Discounts for hydro-copper were in the negative RMB 300-250/mt. Although downstream producers are holding low inventories, highly-fluctuating copper prices have made them generally purchase goods on an as-needed basis, leaving uncertainty for stock replenishment before the Chinese New Year holiday.
A particular attention should be paid to China's industrial and trade data to be announced this Thursday. SMM believes copper prices will continue to fluctuate, and wait for an opportunity to climb higher.
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