SHANGHAI, Dec. 1 (SMM) –SHFE 1202 copper contract prices, the most active one, opened up by RMB 240/mt at RMB 55,510/mt on Wednesday. After the opening, SHFE three-month copper contract prices began to fall after touching the 40-day moving average, with a high only reaching RMB 55,640/mt. Chinese stock markets slid immediately after the opening, and lost 2,400 points to close at 2,333 points, a drop of more than 3%. Besides, LME copper prices also retreated by nearly USD 100/mt before the midday. As a result, SHFE three-month copper contract prices fell more quickly as selling pressures increased, declining to RMB 54,310/mt in the afternoon business. Finally, SHFE 1202 copper contract prices closed at RMB 54,560/mt, down RMB 710/mt or a loss of 1.28%. Positions for SHFE 1202 copper contracts were up 15,158 lots, and trading volumes were up 107,000 lots. Due to growing selling pressures, SHFE copper prices would continue to fluctuate in the near term.
In the spot market, copper premiums fell to between positive RMB 200-450/mt in the morning business, although SHFE copper prices slid all the way. Traded prices for standard-quality copper were between RMB 56,000-56,300/mt, and RMB 56,100-56,550/mt for high-quality copper. Market activity was very light, highlighting cash flow problems at the month's end. Cargo-holders of both domestic and imported copper were actively moving goods, but market transactions were very limited. In the afternoon business, SHFE copper prices continued to fall, but spot copper premiums failed to expand, reporting between positive RMB 350-500/mt. Traded prices were restricted at RMB 56,000/mt in the afternoon session, and transaction volumes became more quiescent.