SHANGHAI, Mar. 22 (SMM) –As LME copper prices retreated overnight, SHFE 1206 copper contract prices, the most active one, opened RMB 470/mt lower at RMB 59,980/mt Wednesday. After the opening, SHFE copper prices rose rapidly and broke resistance at the RMB 60,000/mt mark as long investors entered the market, with a low only touching RMB 59,950/mt. However, SHFE copper prices failed to break through the RMB 60,500/mt level during the whole trading day, and later returned to fluctuate near the daily moving average of RMB 60,300/mt as long investors conducted profit-taking. Finally, the most actively-traded copper contract prices ended at RMB 60,400/mt, down RMB 50/mt, or a loss of 0.08%. Positions for the most actively-traded copper contracts were down 6,734 lots, and trading volumes were down 44,772 lots. With solid support at the RMB 60,000/mt, SHFE copper prices remained fluctuating near current values.
In spot markets, SHFE copper prices lacked momentum to rise, but some hedged copper remained locked. Overall spot copper supply stayed steady, though. Discounts on spot copper were quoted between negative RMB 320-220/mt in the morning business. Traded prices for standard-quality copper were between RMB 59,450-59,600/mt, and RMB 59,550-59,700/mt for high-quality copper. Cargo-holders of standard-quality copper refused to offer large discounts at lower price levels, so its price gap with high-quality copper was limited. Traders and downstream producers continued to stand on the sidelines in the morning business, keeping market activity quiet. In the afternoon session, as SHFE copper prices fell slightly, spot copper discounts narrowed marginally to between negative RMB 300-200/mt. Both traders and downstream producers increased buying at the lows in the afternoon session, allowing market activity to improve from the morning business levels.