SHANGHAI, Jan. 20 (SMM) -- SHFE 1204 copper contract, the most active one, opened up by RMB 280/mt at RMB 59,970/mt Thursday. SHFE three-month copper contract prices broke through 2.5-month high to hit RMB 60,620/mt due to brief entry of longs and 1.3% increase in China’s stock market. However, SHFE three-month copper contract price fell below RMB 60,000/mt mark to a low of USD 59,910/mt owing to short pressure during the afternoon trading hours. Finally, SHFE three-month copper contract price closed at 60,560/mt, up RMB 870/mt or up 1.46% from a day earlier. Positions for SHFE 1204 copper contracts were down 7,330 lots, while trading volumes were up 35,922 lots. Total positions for SHFE copper contracts were down 21,134 lots, an indication that speculators exited market to avoid risk before China’s New Year holiday. SHFE copper prices have advanced steadily recently, with low-end price climbing as well. Technically speaking, SHFE three-month copper contract prices are pointing to RMB 61,000/mt mark.

In the spot market, supply of spot copper reduced to great extent as some arbitrage cargo-holders had difficulties in moving goods amid unchanged price spread and since many players exited market as the Chinese New Year holiday neared. During the noon trading hours, there was almost no supply of spot copper, so copper discounts narrowed to be negative RMB 550-350/mt. Traded prices for standard-quality copper were between RMB 59,250-59,400/mt, and RMB 59,350-59,600/mt for high-quality copper, with supply and demand both sluggish in the market. During afternoon trading hours, SHFE copper prices returned to normal level, so copper discount were between negative RMB 450-300/mt, but traded prices were lower than those in morning trading hours.