SHANGHAI, Dec. 28 (SMM) –SHFE 1203 copper contract prices, the most active one, opened down by RMB 290/mt at RMB 55,100/mt Tuesday. After the opening, SHFE three-month copper contract prices were temporarily pushed up to a level below the 30-day moving average after some short investors reported profit-taking, but met resistance at a high of RMB 55,380/mt. As the Shanghai Composite Index came under pressure at 2,200 points, SHFE three-month copper contract prices posted weak performance and fluctuated around the daily moving average of RMB 55,150/mt during the whole trading day. Finally, SHFE 1203 copper contract prices closed at RMB 55,050/mt, down RMB 340/mt or 0.61%. Positions for SHFE 1203 copper contracts were down 456 lots, and trading volumes were down 83,252 lots. Owing to increasing pressures at the 5-day moving average of RMB 55,100/mt, copper became the only base metal that closed with losses on the SHFE market Tuesday. Intraday operations from long and short investors continued to fall, waiting for more guidance from LME copper prices after the LME market was open.
In the spot market, although SHFE copper prices fluctuated after opening down, copper discounts expanded to between negative RMB 500-350/mt in the morning session, as spot copper supply remained sufficient now that cargo-holders of imported copper continued to aggressively move goods. Traded prices for standard-quality copper were between RMB 54,950-55,150/mt, and RMB 55,050-55,300/mt for high-quality copper. Cargo-holders of domestic copper were unwilling to sell given significant discounts, and smelters especially held quotations firm at RMB 55,000/mt. Speculators with capitals stood on the sidelines, waiting for opportunities of large discounts later this week, while downstream producers stayed out of the market, leading to very light market activity in the morning business. In the afternoon business, as SHFE copper prices kept fluctuating, spot copper discounts expanded further to between negative RMB 650-400/mt. Traded prices fell to between RMB 54,900 -55,150/mt in the afternoon session, but market transactions failed to improve.