SHANGHAI, Apr. 6 (SMM) –As LME copper prices plunged overnight, SHFE 1207 copper contract prices, the most active one, opened RMB 490/mt lower at RMB 59,560/mt Thursday. However, SHFE copper prices sunk rapidly to a low at RMB 59,140/mt after the opening, but then gradually trended higher as investors made bargain hunting. Near the midday, the Shanghai Composite Index surged by 1.8% to 2,300, helping SHFE copper prices continue to narrow the daily declines but still face resistance at the RMB 60,000/mt. In the afternoon business, as LME copper prices challenged USD 8,400/mt, SHFE copper prices reversed earlier losses after rising to the RMB 60,000/mt mark, reaching an intraday high at RMB 60,080/mt. Finally, the most actively-traded copper contract prices closed at RMB 59,970/mt, still down RMB 80/mt or 0.13%. Positions and trading volumes for the most actively-traded copper contracts increased by 24,018 lots and 96,418 lots, respectively. SHFE copper prices still got great buying support near RMB 59,000/mt, and from copper price movements in spot markets, copper also showed strong resilience. As such, SHFE copper prices were expected to fluctuate further around current values.
Quotations for spot copper discounts narrowed noticeably to between negative RMB 120-60/mt in the morning business, as SHFE copper prices opened significantly lower. Traded prices for standard-quality copper were between RMB 58,850-59,200/mt, and RMB 58,900-59,300/mt for high-quality copper. Market activity was active at price levels below RMB 59,000/mt in the morning business, as traders and downstream producers were active replenishing stocks. Nevertheless, as copper prices advanced, market transactions were restricted. Overall, though, market activity was comparatively brisk during the first trading day following the Qingming Festival. In the afternoon session, as SHFE copper prices surged, spot copper discounts expanded to between negative RMB 150-80/mt, while traded prices rose to RMB 59,100-59,350/mt. Some cargo-holders became unwilling to sell in the afternoon business, causing market transactions to fall.