SHANGHAI, Sept. 21 (SMM) –As LME copper prices slumped nearly 4% on the previous trading day, SHFE 1112 copper contract prices, the most active one, opened down RMB 670/mt at RMB 63,200/mt on Tuesday. After the opening, short investors tried again to dampen copper prices by increasing positions. In this context, SHFE three-month copper contract prices posted weak performance, with prices moving lower after a down open and setting a yearly low of RMB 62,480/mt. However, as some long investors began to come into the market after prices falling below RMB 62,500/mt, and since LME copper prices stopped falling and Chinese stock markets rebounded slightly, the moving band of SHFE three-month copper contract prices immediately returned above RMB 62,500/mt, and narrowly fluctuated around RMB 62,700/mt in the afternoon business. Position closings at the tail of trading helped copper prices break the resistance at the daily moving average. Finally, SHFE 1112 copper contract prices closed at RMB 62,960/mt, down RMB 910/mt or a loss of 1.42%. Positions for SHFE 1112 copper contracts were up 4,770 lots, and trading volumes were up 39,178 lots. Short investors reported great profits during the whole trading day, but their willingness in keeping up with falling copper prices weakened. Markets were awaiting the US Federal Reserve meeting to be held on the evening of September 20th.
In the spot market, as SHFE copper prices fell more than RMB 1,000/mt, cargo-holders tried to hold premiums despite ample supply. As SHFE copper prices dropped, copper offers increased from premiums of positive RMB 0-60/mt in the morning business to premiums of positive RMB 20-100/mt in the afternoon session. Traded prices for standard-quality copper were between RMB 63,050-63,200/mt in the morning business, and RMB 63,100-63,350/mt for high-quality copper. With bearish sentiment dominating the market, both downstream producers and traders kept cautious towards purchases, dampening market trading sentiment. In the afternoon session, SHFE copper prices remained weak, but copper supply contracted compared with morning levels, keeping price offers still firm between premiums of positive RMB 0-100/mt. Traded prices were between RMB 63,000-63,250/mt, and market transactions were quiet.