SHANGHAI, Feb. 1 (SMM) -- SHFE 1204 copper contract prices opened RMB 310/mt lower at RMB 60,560/mt. SHFE copper prices remained weak after opening, but buying at lower prices and small gains in the Shanghai Composite Index provided some support for SHFE copper prices, with prices mainly fluctuating around RMB 60,500/mt. SHFE copper prices hit an intraday high of RMB 60,750/mt and touched an intraday low of RMB 60,130/mt, and finally closed at RMB 60,620/mt, down RMB 250/mt or 0.41%. Trading volumes of SHFE 1204 copper contracts fell by 41,980 lots, while positions increased by 18,180 lots.
In the spot market, most cargo-holders showed stronger willingness to sell goods given weak SHFE copper prices, prevailed market pessimism and month-end cash flow pressures, with discounts quoted between RMB 400-300/mt early yesterday. However, continuous declines in SHFE copper prices after 10:00 am greatly depressed market confidence, and spot discounts expanded to RMB 450-350/mt in response, with traded prices for standard copper between RMB 59,300-59,400/mt and traded prices for high-quality copper between RMB 59,400-59,600/mt. Some middlemen made purchases as an arbitrage window opened, but downstream consumers still closed for the holiday, keeping trading light. Market trading became more sluggish in the afternoon.