SHANGHAI, Jan. 21 (SMM) –SHFE 1204 copper contract, the most active one, opened up by RMB 560/mt at RMB 60,850/mt Friday. On the last trading day ahead of the Chinese New Year, transactions on Shanghai futures copper market were quiet. However, Chinese stock rose further by 1%, driving SHFE copper prices to move at a high level around moving averages, with an intraday high at RMB 61,150/mt and a lowest point of the day at RMB 60,400/mt. SHFE three-month copper contract price finally closed at RMB 60,720/mt, up RMB 430/mt, or 0.71%. Trading volumes decreased by 102,000 lots, positions were down by 4,576 lots. The post-holiday movements of SHFE copper price will wait for the directions from LME copper prices during the holiday.
In China's domestic spot market, spot supply kept reducing, with discounts over SHFE copper price narrowed from RMB 450/mt to RMB 200/mt. Traded prices for standard-quality copper were between RMB 59,700-59,800/mt, and RMB 59,800-60,100/mt for high-quality copper, with expanding price differenced. Low-end hydro copper were rarely seen in the market, causing the price to rise along with high-quality copper. With most market players staying away from markets, deals made above RMB 60,000/mt were hardly reported. In the afternoon, transactions were almost suspended with markets entering into the holiday.