SHANGHAI, Sept. 26 (SMM) –As LME copper prices overnight slumped by nearly 9%, SHFE 1112 copper contract prices, the most active one, opened down RMB 3,080/mt at RMB 57,500/mt on Friday. After the opening, SHFE three-month copper contract prices returned to RMB 58,400/mt due to profit-taking by the shorts. However, as the longs fled the markets after touching the stop-loss of RMB 55,000/mt, and since the Shanghai Composite Index lowered to test the support at 2,400 points after a down open, SHFE three-month copper contract prices slid constantly, with prices touching the daily limit-down of RMB 56,940/mt several times during trading hours and then fluctuating around the price mark. In the afternoon session, since LME copper prices continued to plummet and fell to USD 7,100/mt rapidly, all SHFE copper contract prices slid by their daily limit across the board. Finally, SHFE 1112 copper contract prices closed at RMB 56,940/mt, down RMB 3,640/mt or 6.01%. Positions for SHFE 1112 copper contracts were down 16,738 lots and trading volumes were down 79,446 lots. Overall positions for all SHFE copper contracts were also down, suggesting investors were eager to stay out of the market. Copper still fell into a bear market.      

In the spot market, as the international financial market plummeted, copper markets both at home and abroad tumbled, with SHFE copper prices touching the daily limit-down in the morning business, which provided profit opportunities for copper importers. Hedge traders reported profit-taking and were eager to move goods, helping copper premiums fall rapidly between positive RMB 250-300/mt from positive RMB 500/mt in the morning session and positive RMB 250-350/mt near the midday. Traded prices for standard-quality copper were between RMB 57,700-57,950/mt in the morning business, and RMB 57,750-58,000/mt for high-quality copper. Since copper markets slumped rapidly, there were fewer speculators making purchases during the whole trading day. However, some downstream producers made purchases at the lows due to stockpiling needs before the Chinese National Day holiday, while most of them chose to stay out of the market until a stable price trend was visible. In the afternoon session, SHFE copper prices slid by their daily limit across the board, and cargo-holders continued to make panic sell-offs due to pessimistic attitudes. Traded prices were near RMB 55,000/mt, and fewer market players made purchases. Copper prices monitored by the Shanghai Future Exchange (SHFE) were down 9,808 mt to 102,253 mt in the week ended September 23rd, suggesting cargo-holders of imported copper were eager to move goods.