SHANGHAI, Sept. 29 (SMM) –SHFE 1112 copper contract prices, the most active one, opened slightly up at RMB 55,210/mt on Wednesday. After the opening, short-term longs increased purchases, helping SHFE three-month copper contract prices touch an intraday high of RMB 55,770/mt. However, as LME copper prices fell back, SHFE three-month copper contract prices failed to rebound. Coupled with a damp from the shorts, SHFE three-month copper contract prices dropped below the daily moving average after 10:30 am, posting weak movements. In the afternoon session, since the Shanghai Composite Index slid and lost 2,400 points, SHFE three-month copper contract prices drifted down to RMB 54,000/mt, with a low reaching at RMB 53,500/mt. At the tail of trading, large-scale position closings helped SHFE three-month copper contract prices return to earlier morning session levels. Finally, SHFE 1112 copper contract prices closed at RMB 55,170/mt, up RMB 30/mt, or a gain of 0.05%. Positions for SHFE 1112 copper contracts were up 17,976 lots, and trading volumes were up 53,486 lots. Despite disagreements among longs and shorts, bearish sentiment was persistent. Together with increasing pressures at the daily moving average and downside technical indicators, a rally in SHFE copper prices seemed to be just temporary.         

In the spot market, as cargo-holders were active moving goods for capital recovery, initial copper offers were only quoted between premiums of positive RMB 0-100/mt. As SHFE copper prices fell, copper premiums fell all the way and had signs of turning into discounts, with copper offers reported between discounts of negative RMB 50/mt and premiums of positive RMB 50/mt near the midday. Traded prices for standard-quality copper were between RMB 55,550-55,750/mt in the morning business, and RMB 55,600-55,850/mt for high-quality copper. Downstream producers were not seen to largely build inventories before China’s National Day holiday, while traders stayed out of the market for risk aversion, keeping market cautious sentiment more pronounced. In the afternoon session, SHFE copper prices slumped by more than RMB 700/mt, triggering panic sentiment again. In this context, only offers for some high-quality copper maintained premiums of positive RMB 50/mt, while offers for standard-quality copper all turned into discounts. Traded prices fell below RMB 55,000/mt, and market transactions remained muted.