SHANGHAI, Mar. 8 (SMM) –As LME copper prices dived overnight, SHFE 1206 copper contract prices, the most active one, opened RMB 1,400/mt down at RMB 59,180/mt Wednesday. After the opening, SHFE copper prices shook off the lows rapidly as long investors entered the market, moving higher slowly after gaining support at RMB 59,030/mt. Later, as Chinese stock markets rallied, SHFE copper prices accelerated rising momentum and pared previous declines gradually, but still met resistance at RMB 59,650/mt. At the tail of trading, SHFE copper prices failed to rally and remained weak, since Chinese stock markets lost 2,400 points. SHFE 1206 copper contract prices finally ended at RMB 59,470/mt, down RMB 1,110/mt or 1.83%. Positions for SHFE 1206 copper contract were up 12,314 lots, and trading volumes were up 14,440 lots. SHFE copper prices faced new resistance at RMB 60,000/mt, but were supported at near RMB 59,000/mt, with limited upside room expected.
In spot markets, as SHFE copper prices plunged, copper discounts continued to fall. Mainstream offers were reported between discounts of negative RMB 70/mt and premiums of positive RMB 30/mt in the morning business. Traded prices for standard-quality copper were between RMB 58,700-58,820/mt, and RMB 58,750-58,880/mt for high-quality copper. Spot copper prices fell below RMB 59,000/mt, helping hedged copper come into markets. Spot copper supply increased significantly as a result. Downstream producers believed there was still downside room for copper future prices, so made appropriate purchases at the lows. Copper premiums failed to sustain, and even turned into slight discounts due to position closings at the tail of trading. Market surpluses appeared again.