SHANGHAI, Feb. 17 (SMM) –As LME copper prices closed down overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 540/mt down at RMB 60,000/mt Thursday. Chasing LME copper prices, SHFE three-month copper contract prices moved lower after a low open, and lost RMB 59,000/mt in the afternoon business, fluctuating between RMB 58,880-58,940/mt and with an intraday low at RMB 58,780/mt. SHFE three-month copper contract prices rose to above RMB 59,000/mt at the tail of trading, since Chinese stock prices rallied. SHFE 1205 copper contract prices finally ended at RMB 59,210/mt, still down RMB 1,330/mt or 2.2%. Positions for SHFE 1205 copper contracts were up 5,102 lots, and trading volumes were up 67,352 lots. Owing to growing selling pressures and a down close for several straight sessions, SHFE copper prices would test support at the 30-day moving average over the near term.

Shanghai spot copper offers were reported between discounts of negative RMB 300-200/mt in Thursday’s morning business. Traded prices for standard-quality copper were between RMB 58,650-59,750/mt, and RMB 59,700-58,900/mt for high-quality copper. SHFE copper prices fell by more than RMB 1,000/mt following a low open, helping cargo-holders of hedge trading move goods. Spot copper supply increased significantly as a result. Downstream producers increased purchases at below RMB 59,000/mt, with more choosing opportunities given sufficient market supply. The price gap between standard-quality and high-quality copper expanded, and overall market activity improved considerably from the previous day. In the afternoon business, as SHFE copper prices extended losses, spot copper discounts rose to between negative RMB 350-220/mt, but traded prices fell to between RMB 59,350-59,600/mt.