SHANGHAI, Apr. 11 (SMM) –The most actively-traded SHFE 1207 copper contract opened RMB 500/mt lower at RMB 59,610/mt Tuesday, as LME copper prices opened down. However, after the opening, SHFE copper prices followed LME copper prices to move higher, but began to fall after suffering resistance at the 5-day moving average of RMB 60,000/mt. Near the midday, China announced its copper import and export data fell in March MoM, which heightened selling pressures and caused SHFE copper prices to gather falling momentum. In the afternoon session, the sliding momentum of SHFE copper prices slowed after gaining support near the previous low of RMB 59,270/mt, with prices then fluctuating narrowly around RMB 59,500/mt. Finally, SHFE 1207 copper contract prices settled at RMB 59,370/mt, down RMB 740/mt or 1.23%. Positions for SHFE 1207 copper contracts were up 7,948 lots, and trading volumes were up 141,000 lots. Due to unclear technical indicators and stronger upside resistance, selling pressures for SHFE copper were increasing.
SHFE copper prices trended lower after a low open, helping spot copper offers turn to premiums of positive RMB 0-60/mt in the morning business. Traded prices for standard-quality copper were between RMB 59,100-59,280/mt, and RMB 59,150-59,350/mt for high-quality copper. Near the midday, China announced the latest copper import and export data slid from the previous month, sending SHFE current-month copper contract prices down towards RMB 59,000/mt. Traders and downstream producers in spot markets thus increased purchases significantly at lower price levels. In the afternoon session, as SHFE current-month copper contract prices lurched weakly around the RMB 59,000/mt mark, cargo-holders withheld goods at the lows, leading spot copper premiums to rise to between positive RMB 30-70/mt. Traded prices slid to between RMB 59,000-59,200/mt in the afternoon business, but most market players took a wait-and-see stance.