SHAGNHAI, Jul. 20 (SMM) –SHFE 1109 copper contract prices, the most active one, opened slightly up RMB 30/mt at RMB 72,100/mt on Tuesday, with prices basically fluctuating around the daily moving average during the whole trading day. In the morning session, SHFE three-month copper contract prices followed LME copper prices to fall back after meeting resistance at a high level of RMB 72,440/mt reached on Monday, with both limited rising momentum from the longs and sell-offs from shorts. In the afternoon session, SHFE three-month copper contract prices moved around RMB 72,300/mt as Shanghai Composite Index failed to return to 2,800 points, and then tracked LME copper prices to break the resistance at RMB 72,500/mt, hitting a daily high level of RMB 72,710/mt. Finally, the most actively-traded copper contract prices closed at RMB 72,660/mt, up RMB 590/mt or 0.82%, and standing at the 5-day moving average. Positions for SHFE 1109 copper contracts were down 14,728 lots and trading volumes were down 14,018 lots, while positions and trading volumes for SHFE 1110 copper contracts were up 16,018 and 29,990 lots, respectively, suggesting the shift of the most actively-traded copper contract. Although newly built positions pushed up copper prices, investor’s sentiment was still dampened in the near term. Hence, SHFE three-month copper contract prices would test RMB 72,500/mt.
In spot market, SHFE copper prices fell after initially increasing in the morning business. Market supply remained ample, with domestic copper dominating the market. Spot copper discounts increased compared to Monday, with discounts quoted at negative 350-220/mt during the whole trading day. Traded price for standard-quality copper were between RMB 71,700-71,800/mt, and RMB 71,750-71,950/mt for high-quality copper. Downstream producers chose to stand on the sidelines, while some traders took the opportunity to enter into the market for hedge trading. Spot copper discounts and trading prices in the afternoon session were reported flat at morning levels. SHFE copper prices increased significantly at the tail of trading, making trading more cautious.
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