SHANGHAI, Nov. 11 (SMM) –As LME copper prices slumped overnight, SHFE 1201 copper contract prices, the most active one, opened 2,360/mt down at RMB 55,980/mt on Thursday. After the opening, SHFE three-month copper contract prices slid quickly and directly tested support at RMB 55,000/mt. Since Chinese stock markets continued to plummet after a low open, down by 2%, SHFE three-month copper contract prices only fluctuated around the RMB 55,000/mt mark before falling by their daily limit at the tail of trading. Finally, SHFE 1201 copper contract prices closed at RMB 54,830/mt, down RMB 3,510/mt, or a loss of 6.02%. Positions for SHFE 1201 copper contracts were up 17,542 lots, while trading volumes were down 479,000 lots. SHFE copper prices were expected to extend the fluctuation for the foreseeable future.
In the spot market, as SHFE copper prices plunged by nearly 6% and fell by their daily limit in the session, copper premiums rose to between positive RMB 100-200/mt in the morning business. Traded prices for standard-quality copper were between RMB 55,750-56,000/mt, and RMB 55,850-56,150/mt for high-quality copper. Cargo-holders of hedged copper were eager to move goods, keeping market supply sufficient during the whole trading day, and with low-quality copper dominating the market. Traders’ purchasing interest was dampened by high spot copper premiums, while downstream producers slightly increased purchases, which helped promote market transactions. In the afternoon session, since SHFE copper prices remained weak and spot copper supply, especially high-quality copper, contracted compared with the morning business, spot copper premiums expanded slightly to between positive RMB 120-250/mt, but traded prices failed to touch RMB 56,000/mt.