SHANGHAI, Aug. 3 (SMM) –As LME copper prices slumped overnight, SHFE 1110 copper contract prices, the most active one, opened down RMB 980/mt at RMB 72,410/mt on Tuesday. After opening, both the longs and shorts closed positions in a large scale. Coupled with the resistance at USD 9,700/mt for LME copper prices and a nearly 2% slump in the Shanghai Composite Index, SHFE copper prices lost RMB 72,000/mt during the trading hours, declining as low as RMB 71,930/mt, with the fluctuating band within RMB 200/mt. Finally, the most actively-traded copper contract prices closed at RMB 72,010/mt, down RMB 1,380/mt or a loss of 1.88%. Positions for the most actively-traded copper contracts were down 10,238 lots and trading volumes were down 18,576 lots. The support at the 20-day moving average was weak, but earlier low-end SHFE copper prices were not broken through, with slower declining pace.

In spot market, copper discounts fell significantly to negative RMB 250-180/mt, as SHFE copper prices moved lower after a low open, and since copper supply contracted due to unwillingness in selling goods from optimistic speculators. Trade prices for standard-quality copper were between RMB 71,630-71,700/mt in the morning business, and RMB 71,650-71,750/mt for high-quality copper. Some traders with optimistic outlooks chose opportunities to make appropriate deals, while downstream producers made purchases at low prices, resulting in an improvement in market transactions. SHFE copper prices continued to fall in the afternoon session, and copper discounts for high-quality copper were reported between negative RMB 200-150/mt. Traded prices were between RMB 71,550-71,750/mt, and trading sentiment was lower compared with the morning session.