SHANGHAI, Aug. 26 (SMM) –SHFE 1111 copper contract prices, the most active one, opened slightly down RMB 20/mt at RMB 66,570/mt on Thursday. After opening, SHFE three-month copper contract prices were pushed up near RMB 67,000/mt due to position closings by shorts. Although a falling US dollar lifted LME copper prices and domestic stock markets kept rising, SHFE three-month copper contract prices still met resistance at RMB 67,000/mt, and then returned to fluctuate around the daily moving average of RMB 66,800/mt after failing to reach the price mark several times Finally, SHFE 1111 copper contract prices closed at RMB 66,790/mt, up RMB 200/mt or 0.3%. Positions for SHFE 1111 copper contracts were down 1,384 lots, while trading volumes were up 28,241 lots. SHFE three-month copper contract prices moved above the 5-day moving average on Thursday, and the longs were on the uphand, while short-term speculators were more focused on Bernanke’s speech on Friday.
In spot market, imported copper increased gradually, as cargo-holders were eager to move goods for cash generation due to the approach of the month-end In this context, copper premiums fell further to positive RMB 50-120/mt. Trade prices for standard-quality copper were between RMB 66,950-67,050/mt in the morning business, and RMB 67,000-67,100/mt for high-quality copper. The increases in low-quality copper also depressed transactions for high-quality copper to some extent, and market supply still exceeded market demand. SHFE copper prices continued to fluctuate in the afternoon session, and consumption failed to improve, forcing spot premiums to decrease further. Premiums for standard-quality copper were positive RMB 50/mt, and positive RMB 100/mt for high-quality copper. Highest traded prices still met resistance at RMB 67,000/mt, and market supply was sufficient.