SHANGHAI, Aug. 19 (SMM) –SHFE 1111 copper contract prices, the most active one, opened up around RMB 300/mt at RMB 67,120/mt on Thursday. SHFE three-month copper contract prices moved lower after a high open, falling as low as RMB 66,610/mt. Till the second trading session, as LME copper prices surged, SHFE three-month copper contract prices increased, climbing to RMB 67,340/mt. In the afternoons session, SHFE three-month copper contract prices reversed earlier gains, as LME copper prices fell below USD 8,900/mt due to a rising US dollar index, and since Chinese stock markets slid 1.6%. Finally, SHFE 1111 copper contract prices closed at RMB 66,700/mt, down RMB 120/mt, or a loss of 0.18%. Positions for SHFE 1111 copper contracts were up 7,880 lots, and trading volumes were up 28,458 lots. With the struggle between the longs and shorts, speculative activities were mainly short term operation. Despite upward indicators, SHFE three-month copper contract prices were expected to fluctuate further.
In spot markets, as SHFE copper prices earlier moved lower, copper offers were initially flat with the previous day levels, at premiums of positive RMB 100-200/mt. After the second trading session, SHFE copper prices rose by more than RMB 40/mt from the lows, prompting traders to move goods for cash generation, and dragging down copper premiums. Downstream producer’s buying interest was dampened again as SHFE copper prices increased, helping copper offers reduce to premiums of positive RMB 0-150/mt near the midday. Trade prices for standard-quality copper were between RMB 67,100-67,300/mt in the morning business, and RMB 67,150-67,450/mt for high-quality copper. Overall market transactions were less active compared to the previous trading day. SHFE copper prices dropped further in the afternoon session, and spot copper premiums expanded to positive RMB 100-150/mt. However, copper offers fell between RMB 67,100-67,250/mt, but there was still buying at low prices.