SHAGNHAI, Jul. 27 (SMM) –SHFE 1110 copper contract prices, the most active one, opened up RMB 40/mt at RMB 71,770/mt on Tuesday, with prices moving higher after a high open during the whole trading day. As LME copper prices challenged USD 9,800/mt, SHFE three-month copper contract prices directly challenged RMB 72,900/mt after breaking through RMB 72,000/mt and the 5 and 10-day moving averages, but met resistance after touching a high level at RMB 72,850/mt. Finally, the most actively-traded copper contract prices closed at RMB 72,810/mt, up RMB 1,140/mt or a gain of 1.59%. Positions for SHFE 1110 copper contracts were up 14,542 lots, and trading volumes were up 30,106 lots. Market players regained confidence for a rebound in SHFE three-month copper contract prices after prices pared losses at the 5 and 10-day moving averages.
In the spot market, SHFE copper prices moved higher after a high open, and cargo-holders were active in moving goods at high prices, with significantly high market supply compared with the previous trading day. In this context, copper discounts were quoted between negative RMB 350-250/mt. Trade prices for standard-quality copper were between 71,650-71,750/mt, and RMB 71,720-71,800/mt for high-quality copper. Despite copper discounts, traders made limited transactions given high market risks, while downstream producers continued to stand on the sidelines due to high prices, resulting in oversupply in the market. As SHFE copper prices increased by more than RMB 400/mt in the afternoon session, copper discounts rose to negative RMB 500-350/mt. Traded prices were pushed up to RMB 71,900/mt. High copper discounts attracted some traders to make purchases, but overall trading remained limited.