SHANGHAI, Aug. 24 (SMM) –As LME copper prices held the gains on the previous trading day, SHFE 1111 copper contract prices, the most active one, opened up RMB 380/mt at RMB 66,730/mt on Wednesday. SHFE three-month copper contract prices moved lower after a high open during the whole trading day, with the resistance at the daily moving average. As LME copper prices moved downward due to the rising US dollar, and since Chinese stock markets turned to fall in the afternoon session, SHFE three-month copper contract prices narrowed the daily gains, dropping to a low at RMB 66,360/mt. Finally, SHFE 1111 copper contract prices closed at RMB 66,470/mt, up RMB 120/mt, or a gain of 0.18%. Positions for SHFE 1111 copper contracts were down 684 lots, and trading volumes were down 42,714 lots. Short-term speculators chose to stay out of the marekt temporarily. SHFE three-month copper contract prices experienced fluctuations for nearly a week, tracking LME copper prices, and would continue to fluctuate around the 5 and 10-day moving averages for the foreseeable future.
In spot market, although SHFE copper prices moved lower after a high open, cargo-holders were eager to move goods, keeping market supply sufficient. As a result, copper premiums declined to positive RMB 80-150/mt. Trade prices for standard-quality copper were between RMB 66,750-66,800/mt in the morning business, and RMB 66,800-66,900/mt for high-quality copper. As market confidence didn’t recover effectively, downstream buying interest was still low, causing copper prices to meet resistance around RMB 67,000/mt. SHFE copper prices continued to drop in the afternoon session, and weak consumption remained. In this context, copper premiums failed to increase, nearly flat with morning session levels. Traded prices fell slightly to RMB 66,700-66,800/mt, and market transactions were less active than the morning.