SHANGHAI, Mar. 14 (SMM) –SHFE 1206 copper contract prices, the most active one, opened RMB 120/mt higher at RMB 60,680/mt Tuesday. SHFE copper prices continued to fluctuate around the daily moving average after the opening, but rose rapidly and challenged resistance at the RMB 61,000/mt mark near the midday, as a sliding US dollar helped LME copper prices break out USD 8,500/mt. In the afternoon session, Chinese stock markets increased, supporting SHFE copper prices to move firmly around RMB 61,000/mt and touch a high of RMB 61,120/mt. Finally, SHFE 1206 copper contract prices closed at RMB 61,040/mt, up RMB 480/mt or 0.79%. Trading volumes for SHFE 1206 copper contract were down 24,418 lots, while positions were up 1,568 lots. SHFE copper prices already stood above all moving averages, with increasing support at RMB 60,500/mt, and would test RMB 61,000/mt Wednesday.
In spot markets, SHFE copper prices rebounded slightly and rose abruptly near the midday, but cargo-holders continued to quote prices firm. Mainstream copper offers were reported between discounts of negative RMB 50/mt and premiums of positive RMB 30/mt in the morning business. Traded prices for standard-quality copper were between RMB 59,800-59,950/mt, and RMB 59,850-60,050/mt for high-quality copper. Cargo-holders of high-quality copper refused to move goods at discounts, while the supply of low-quality hydro-copper was limited. The price gap between standard- and high-quality copper was relatively small, so market activity for high-quality copper was active. Downstream producers stuck to the sidelines above RMB 60,000/mt, but bought aggressively at the lows in the morning session. In the afternoon session, SHFE copper prices fluctuated at high prices, but spot copper offers were nearly unchanged from the morning session levels, while the low-end traded price rose to RMB 59,950/mt. Actual market transactions remained limited in the afternoon business.