SHANGHAI, Dec. 21 (SMM) –As LME copper prices stabilized overnight, SHFE 1203 copper contract prices opened slightly up by RMB 470/mt at RMB 54,000/mt Tuesday. SHFE three-month copper contract prices moved lower after the opening, since short-term short investors opened new positions. Despite a lift from positive Chinese stock markets, SHFE three-month copper contract prices failed to break out resistance at RMB 54,000/mt, and then slid rapidly to a low of RMB 53,280/mt after LME copper prices fell. In the afternoon session, as LME copper prices rallied to around USD 7,300/mt, SHFE three-month copper contract prices broke out resistance at the daily moving average at the tail of trading, drifting higher to RMB 53,500/mt. Finally, SHFE 1203 copper contract prices closed at RMB 53,740/mt, up RMB 210/mt or 0.39%. Positions for SHFE 1203 copper contracts were up 9,802 lots, while trading volumes were down 30,924 lots. Long and short investors held divergence at between RMB 53,000-54,000/mt, and SHFE copper prices faced increasing pressures at the 5-day moving average.   

In the spot market, SHFE copper prices fell from initially increasing, but copper premiums failed to hold firm, reporting between positive RMB 0-120/mt in the morning session. Traded prices for standard-quality copper were between RMB 54,200-54,450/mt, and RMB 54,300-54,600/mt for high-quality copper. Cargo-holders chose to aggressively move goods when copper prices rebounded during the whole trading day. The supply of imported copper was very sufficient, but market transactions remained very limited. In the afternoon session, as SHFE copper prices drifted higher, spot copper premiums fell further, and some standard-quality copper traded at a discount, while mainstream offers were reported between discounts of negative RMB 50/mt and premiums of positive RMB 80/mt. However, consumption in the afternoon business was weaker than the morning business levels, and traded prices fell to between RMB 54,150 -54,450/mt.