SHANGHAI, Mar. 7 (SMM) –As LME copper prices slumped overnight, SHFE 1206 copper contract prices, the most active one, opened RMB 320/mt down at RMB 61,000/mt Tuesday. After the opening, SHFE copper prices followed LME copper prices to slide all the way, with an intraday high only touching RMB 61,050/mt. As Chinese stock markets fell by 1.4%, SHFE copper prices gathered falling momentum in the afternoon session and retreated to as low as RMB 60,270/mt. Finally, SHFE 1206 copper contract prices ended at RMB 60,390/mt, down RMB 930/mt, or a loss of 1.52%. Positions for SHFE 1206 copper contract were up 12,238 lots, and trading volumes were up 61,784 lots. Due to downside technical indicators and increasing selling pressures from short investors, SHFE copper prices were likely to lose RMB 60,000/mt.
Discounts on spot copper were reported between negative RMB 130-70/mt in Shanghai Tuesday. Traded prices for standard-quality copper were between RMB 59,650-59,850/mt during the trading day, and RMB 59,700-59,900/mt for high-quality copper. SHFE copper prices moved lower due to increasing resistance, so spot copper discounts fell further. Spot copper supply remained stable. High-quality copper was sought by traders, while downstream producers still hesitated to make purchases, keeping market activity light.