SHANGHAI, Aug. 4 (SMM) –SHFE 1110 copper contract prices, the most active one, opened down RMB 330/mt at RMB 71,900/mt on Wednesday, with weak rising momentum during the whole trading day. SHFE three-month copper contract prices gained support after dropping briefly to RMB 71,850/mt after opening, tracking LME copper prices to move stably higher. Coupled with rising domestic stock markets in the morning business, SHFE three-month copper contract prices gradually pared Tuesday’s losses, but met resistance at the 20-day moving average of RMB 72,280/mt. LME copper prices also met pressures at this price mark, causing stock markets to fall from initially increasing, and leading SHFE three-month copper contract prices to lose RMB 72,000/mt again. Finally, SHFE 1110 copper contract prices closed at RMB 72,060/mt, down RMB 170/mt, or a loss of 0.24%. Positions for SHFE 1110 copper contracts were up 5,400 lots, while trading volumes were down 32,830 lots. With the existing resistance at the 20-day moving average, both the longs and shorts were wary of building new positions. Hence, SHFE three-month copper contract prices were expected to continue to make corrections.
In spot market, SHFE copper prices moved higher after a low open, and cargo-holders showed slight unwillingness in moving goods due to growing market optimistic sentiment, resulting in limited market supply. However, copper discounts were not seen to increase but were still quoted between negative RMB 250-150/mt. Trade prices for standard-quality copper were between RMB 71,600-71,700/mt in the morning business, and RMB 71,650-71,850/mt for high-quality copper, essentially flat with the previous trading day. Downstream producers continued to make purchases at low prices, and market transactions continued to improve compared with a day earlier. In the afternoon session, as SHFE current-month copper contract prices dropped from high levels, spot copper discounts fell slightly, with discounts for high and standard-quality copper reported at around negative RMB 150/mt and RMB 190/mt, respectively. Traded prices were flat with morning levels, but trading sentiment was lower.