SHANGHAI, Jan. 12 (SMM) –As LME copper prices surged overnight, SHFE 1203 copper contract prices, the most active one, opened up by RMB 620/mt at RMB 56,220/mt Wednesday. SHFE three-month copper contract prices moved higher after a high open as both long and short investors closed positions during the trading day, with an intraday high at RMB 56,950/mt. Finally, SHFE 1203 copper contract prices closed at RMB 56,860/mt, up RMB 1,260/mt or 2.27%. Positions for SHFE 1203 copper contracts were down 5,248 lots, and trading volumes were down 53,834 lots. The fluctuating band of SHFE copper prices already stood above all daily moving averages, but investors lacked confidence in keeping up with rising prices. Therefore, SHFE copper prices still faced great selling pressures at highs, especially ahead of Thursday’s release of China’s important economic data, and a probable drop in GDP was likely to dampen copper prices.

In the spot market, SHFE copper prices moved higher after a high open, but spot copper supply decreased since cargo-holders became less willing to move goods, allowing copper discounts to move between negative RMB 200-80/mt in the morning business. Traded prices for standard-quality copper were between RMB 55,700-55,850/mt, and RMB 55,750-55,950/mt for high-quality copper. Downstream producers lacked buying interest near the RMB 56,000/mt level, causing market transactions to become quiet in the morning business. In the afternoon session, although SHFE copper prices rose further, spot copper discounts narrowed to between negative RMB 150-50/mt since high-quality copper was rarely seen. Traded prices rose to between RMB 55,750-56,250mt in the afternoon business, but market transactions failed to improve significantly.