SHANGHAI, Mar. 1 (SMM) –SHFE 1205 copper contract prices, the most active one, opened RMB 150/mt up at RMB 60,880/mt Wednesday. After the opening, SHFE copper prices followed LME copper prices to rise stably after gaining support near the 5-day moving average of RMB 60,600/mt. In the afternoon session, as LME copper prices steadied above USD 8,600/mt, SHFE copper prices climbed further to a high RMB 61,150/mt after breaking out resistance at RMB 61,000/mt. At the tail of trading, SHFE copper prices suffered sell-offs and narrowed early gains since Chinese stock markets closed down by nearly 1%. Finally, SHFE 1205 copper contract prices closed at RMB 61,070/mt, up RMB 340/mt or 0.56%. Positions for SHFE 1205 copper contract were down 3,112 lots, but trading volumes were up 30,354 lots. SHFE copper prices were extremely likely to move higher, but would test RMB 61,000/mt repeatedly for the near future.
SHFE copper prices moved higher after a high open. Spot copper market transactions, though, fell after initially rising due to the last trading day of the month. Spot copper discounts were reported between negative RMB 420-320/mt in Wednesday's morning business. Traded prices for standard-quality copper were between RMB 59,800-59,950/mt, and RMB 59,850-60,000/mt for high-quality copper. Market transactions were modest at prices below RMB 60,000/mt in the morning business, with high-quality copper favored by market buyers, but hydro-copper supply decreased significantly owing to excessive discounts. At the tail of trading in the morning business, SHFE copper prices surged, but spot copper supply fell, keeping spot copper discounts little changed. As a large number of market players were optimistic over future copper prices, cargo-holders were awaiting a drop in copper discounts to move goods. Market transactions were restricted at above RMB 60,000/mt. In the afternoon session, SHFE copper prices rose further, so some hedged copper was locked, causing spot copper supply to decrease further. Spot copper discounts held the morning business levels as a result in the afternoon business, while traded prices edged higher to between RMB 59,900-60,050/mt.