SHANGHAI, Jan. 6 (SMM) –As LME copper prices expanded losses overnight, SHFE 1203 copper contract prices, the most active one, opened down by RMB 730/mt at RMB 55,420/mt Thursday. After the opening, since LME copper prices rallied to the USD 7,600/mt level, SHFE three-month copper contract prices moved higher after falling to RMB 55,300/mt. Finally, SHFE 1203 copper contract prices closed at RMB 56,050/mt, down slightly by RMB 90/mt, or a loss of 0.16%. Positions for SHFE 1203 copper contracts were up 764 lots, and trading volumes were up 34,298 lots. SHFE copper prices remained fluctuating.
In the spot market, although SHFE copper prices moved higher after a low open, copper discounts fell to between negative RMB 300-150/mt in the morning business, as traders became less willing to move goods owing to limited profits. Traded prices for standard-quality copper were between RMB 55,650-55,950/mt in the morning session, and RMB 55,750-56,100/mt for high-quality copper. Downstream producers made purchases at low price levels in the morning session. In the afternoon business, as SHFE copper prices fluctuated in a narrow band, spot copper discounts fell further, down to between negative RMB 250-150/mt, but the lowest traded prices rose to RMB 55,900/mt. Some speculators chose to sell futures copper contracts and buy spot copper, helping improve overall market transactions compared with the prior day.