SHANGHAI, Oct. 28 (SMM) –As LME copper prices closed with gains overnight, SHFE 1210 copper contract prices, the most active one, opened RMB 850/mt higher at RMB 57,680/mt on Thursday. After the opening, SHFE three-month copper contract prices met resistance at the 30-day moving average of RMB 58,000/mt before fluctuating at high levels near the daily moving average of RMB 57,500/mt. In the afternoon session, as LME copper prices inched higher, SHFE three-month copper contract prices drifted higher, breaking out the RMB 58,000/mt resistance and climbing as high as RMB 58,070/mt. Finally, the most actively-traded copper contract prices closed at RMB 58,040/mt, up RMB 1,210/mt or 2.13%. Positions for the most actively-traded copper contracts were up 2,848 lots, while trading volumes were down 178,000 lots, with some bulls keeping up with rising prices. SHFE copper prices would face resistance at RMB 58,000/mt over the near term, and would test RMB 59,000/mt reached on September 22nd, once standing above the price mark.
In the spot market, as SHFE copper prices felt weak to move higher, copper offers stabilized between premiums of positive RMB 200-300/mt in the morning business. However, since cargo-holders were eager to sell due to capital pressures before the month’s end and market worries over a continuous copper price rebound, spot copper premiums narrowed to between positive RMB 120-250/mt near the midday. Traded prices for standard-quality copper were between RMB 57,900-58,100/mt, and RMB 58,000-58,250/mt for high-quality copper. Downstream producers and speculators were wary of entering the market, keeping market activity quiet and copper supply ample again. In the afternoon session, as SHFE copper prices continued to move higher, spot copper premiums narrowed again, with hydro-copper already trading at discounts and standard-quality copper holding firm at premiums of positive RMB 0/mt. Overall spot copper offers were mainly quoted between premiums of positive RMB 0-150/mt in the afternoon session, and traded prices stood above RMB 58,000/mt, restricting market transactions.