SHANGHAI, Sept. 23 (SMM) –As LME copper prices lost USD 8,100/mt after the opening, SHFE 1112 copper contract prices, the most active one, opened down RMB 1,010/mt at RMB 61,480/mt on Thursday. After the opening, SHFE three-month copper contract prices experienced a wave of panic declines, falling to a low of RMB 59,370/mt after breaking RMB 60,000/mt. Following the declines, buying helped SHFE three-month copper contract prices return to RMB 60,850/mt and then fluctuate around the price mark. However, the rebound was limited due to overshadowed bearish sentiment, with the high-end price failing to exceed the opening price of RMB 61,480/mt. In the afternoon session, the Shanghai Composite Index slumped by nearly 2.78%, dropping to near the opening level of 2,440 points on the previous trading day. As a result, SHFE 1112 copper contract prices were pressured at the daily moving average, and finally closed at RMB 60,260/mt, down RMB 2,230/mt, or a loss of 3.57%. Positions for SHFE 1112 copper contracts were up 14,424 lots, and trading volumes were significantly up 59,192 lots. Without support from the macro-economic front, positive news, demand side and technical indicators, copper markets were expected to extend the losses.
In the spot market, as SHFE copper prices continued to slump by more than 3%, cargo-holders pushed up copper premiums, which were initially reported between positive RMB 80-180/mt. SHFE copper prices plummeted again at the tail of trading in the morning business, losing RMB 61,000/mt, which helped copper premiums increase to positive RMB 120-250/mt. Since copper prices were on a downside track, all market participants chose to stand on the sidelines. Traded prices for standard-quality copper were between RMB 61,100-61,700/mt in the morning business, and RMB 61,150-61,850/mt for high-quality copper. Spot copper supply remained ample, while market transactions rose at first, and then fell. SHFE copper prices continued to slip in the afternoon session, but market consumption remained quiet. As a result, copper premiums failed to rise, reporting between positive RMB 120-220/mt. Traded prices already fell between RMB 60,800-61,300/mt, and market transactions stayed weak.