SHANGHAI, Mar. 16 (SMM) –As LME copper prices fell overnight, SHFE 1206 copper contract prices, the most active one, opened RMB 630/mt lower at RMB 60,300/mt Thursday. SHFE copper prices posted weak performance during the whole trading day, fluctuating narrowly around the daily moving average of RMB 60,300/mt before the midday. In the afternoon business, as LME copper prices slid, and as Chinese stock markets closed down, SHFE copper prices drifted lower to RMB 60,100/mt, but were well supported at RMB 60,000/mt, with a low reaching RMB 60,030/mt. At the tail of trading, position closings by short investors helped SHFE copper prices return to early trading session levels, and rose further to an intraday high of RMB 60,580/mt. Finally, SHFE 1206 copper contract prices closed at RMB 60,420/mt, down RMB 510/mt, or a loss of 0.84%. Positions for SHFE 1206 copper contract were up 5,290 lots, while trading volumes were down 5,716 lots. SHFE copper prices faced great upside pressures near the daily moving average, but won solid support at RMB 60,000/mt. Hence, SHFE copper prices will continue to show resilience over the near term.
SHFE copper prices plunged, but the price gap between SHFE 1203 and 1204 copper contract held between RMB 300-400/mt. Besides, Thursday was the last trading day for SHFE 1203 copper contract. Some cargo-holders in spot markets thus were unwilling to move goods and insisted on premiums, hoping to sell at high price levels Friday. Mainstream offers were quoted between premiums of positive RMB 20-100/mt in the morning business. Traded prices for standard-quality copper were between RMB 59,420-59,520/mt during the trading day, and RMB 59,450-59,600/mt for high-quality copper. Downstream producers bought as needed at the lows, so overall market activity improved.