SHANGHAI, Jan. 21 (SMM) -- On Wednesday, SHFE three-month copper prices opened higher at RMB 61,230/mt, and later moved down. The price declines in the afternoon session accelerated due to a falling China A-shares market, with prices finally closing at RMB 61,000/mt, down RMB 550/or or 0.89% from a day ago. Total positions soared by 18,664 lots. Short-term short positions chose an opportunity to enter the market, since financial markets reported some news recently.
The spot market remained quiet. Spot discounts were at negative RMB 300-150/mt range, increasing further from a day earlier. In the afternoon business, spot discounts for high-quality copper narrowed, but transactions dropped further along with falling trends of copper prices.
A strong wait-and-see attitude dominated the market, after the strong price gains in earlier month came to an end, with weak downstream demand reported. Copper prices are expected to fluctuate more wildly amid frequent news of tightening credit. The commodity price will experience corrections in the short term once the news is verified.
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