SHANGHAI, Oct. 12 (SMM) –As LME copper prices rose above USD 7,400/mt, SHFE 1112 copper contract prices, the most active one, opened RMB 960/mt higher at RMB 55,780/mt Tuesday. After the opening, SHFE three-month copper contract prices met resistance and fell back after briefly increasing to RMB 56,000/mt.As short investors actively built positions at highs during the whole trading day, and since Chinese equity markets declined after opening nearly 3% higher, SHFE three-month copper contract prices declined all the way and lost support at the 5-day moving average in the afternoon session, with the low-end at RMB 54,130/mt. Finally, the most actively-traded copper contract prices closed at RMB 54,210/mt, down RMB 610/mt or a loss of 1.11%. Positions for the most actively-traded copper contracts were up 47,340 lots, and trading volumes were up 193,000 lots. Positions for all SHFE copper contracts were up 63,470 lots, while trading volumes were up 253,000 lots. SHFE copper prices were facing more pressures to fall.
In the spot market, spot copper offers and transactions were almost the same with the previous trading day, since SHFE copper prices extended lower movements after a high open on the prior day. Highest traded copper prices in the morning session were near RMB 56,000/mt, while offers were reported at discounts of negative RMB 50-0/mt, with moderate market transactions. However, as SHFE copper prices slid, premiums failed to increase due to sluggish consumption. Furthermore, panic sentiment kept downstream producers and speculators out of the market, keeping price offers between premiums of positive RMB 0-70/mt. Traded prices for standard-quality copper were between RMB 55,200-55,350/mt, and RMB 55,300-55,600/mt for high-quality copper. Ample market supply was more pronounced. SHFE copper prices continued to move lower in the afternoon business, and market transactions were not seen to improve, with cautious sentiment spreading in the market. Spot copper premiums slightly rose to premiums of positive RMB 30-100/mt, but traded prices lost RMB 55,000/mt. Panic and wait-and-see sentiment was growing.