SHANGHAI, Dec. 7 (SMM) –SHFE 1202 copper contract prices, the most active one, followed LME copper prices to open lower on Tuesday, down RMB 680/mt at 57,380/mt. After the opening, SHFE three-month copper contract prices temporarily lowered to test the 5-day moving average of RMB 57,210/mt. As short investors made profit-taking, pressures eased some. However, Chinese stock markets continued to close lower, dragging down SHFE three-month copper contract prices, which fluctuated narrowly around RMB 57,500/mt in the morning business. In the afternoon business, as LME copper prices rallied from previous lows, SHFE three-month copper contract prices climbed to an intraday high of RMB 57,800/mt. Finally, SHFE 1202 copper contract prices closed at RMB 57,670/mt, down RMB 390/mt or 0.67%. Positions for SHFE 1202 copper contracts were down 1,084 lots, and trading volumes were down 24,036 lots. Market activity was very light during the whole trading day, since both short and long investors were awaiting guidance from the European Central Bank’s (ECB) meeting, with new resistance at the 60-day moving average for SHFE copper prices.
In the spot market, although SHFE copper prices fluctuated after a low open, an increase in copper supply caused copper premiums to fall all the way, with mainstream copper offers quoted between discounts of negative RMB 50/mt and premiums of positive RMB 80/mt in the morning business. Daily traded prices for standard-quality copper were between RMB 57,900-58,000/mt, and RMB 57,950-58,120/mt for high-quality copper. Imported standard-quality copper was traded at discounts. Downstream producers were seen to make purchases at prices below RMB 58,000/mt, and speculators also increased purchases at low copper premium levels, leading to an improvement in market transactions.