SHAGNHAI, Jul. 21 (SMM) –SHFE 1109 copper contract prices, the most active one, opened up RMB 560/mt at RMB72，910/mt on Wednesday, with prices moving lower after a high open and meeting resistance at the daily moving average during the whole trading day. In the morning session, SHFE three-month copper contract prices followed LME copper prices to make corrections after opening significantly higher, reaching a high level of only RMB 72,980/mt. Coupled with a drag from China’s stock markets, SHFE three-month copper contract prices gradually returned back to test Tuesday’s resistance of RMB 72,500/mt, and found weak support at the price market before the midday. In the afternoon session, domestic stock markets continued to fall and test the 60 and 20-day moving averages. In this context, SHFE three-month copper contract prices moved downward further and lost RMB 72,500/mt, and got support around Tuesday’s settlement prices of RMB 72,350/mt after dropping to RMB 72,220/mt. Finally, the most actively-traded copper contract prices closed at RMB 72,420/mt, up RMB 70/mt or 0.01%. Positions for SHFE 1109 copper contracts were down 14,186 lots and trading volumes were down 12,086 lots, while positions and trading volumes for SHFE 1109 copper contracts were up 12,870 lots and 14,686 lots, respectively, signaling the continuous shift of the most actively-traded copper contracts. Although the 5-day moving average well supported SHFE copper prices and gradually moved upside, the longs were eager to make profit-taking at RMB 73,000/mt during the trading day. Hence, the resistance of SHFE three-month copper contract prices at RMB 72,500/mt remained due to a lack of domestic rising momentum.
In the spot market, copper discounts increased to negative RMB 400-280/mt as SHFE copper prices opened higher. Traded prices for standard-quality copper were between RMB 71,950-72,050/mt, and RMB 72,000-72,150 for high-quality copper. Market supply remained sufficient and cargo-holders’ willingness to move goods increased, while downstream producers were wary of the traded prices above RMB 72,000/mt, resulting in limited trading. SHFE copper prices moved lower in the afternoon session, causing copper discounts to drop slightly to negative RMB 300-250/mt. Traded prices were held firm at RMB 72,000/mt, and market transactions failed to improve.
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