SHANGHAI, Apr. 12 (SMM) –The most-traded July copper contract on the SHFE opened RMB 1,420/mt lower at RMB 58,200/mt Wednesday, since LME copper prices plunged by more than 3% in the previous session. SHFE copper prices only moved narrowly around the daily moving average during the day with a fluctuating band of only about RMB 400/mt. The highest and lowest SHFE copper price during the day stood at RMB 58,360/mt and RMB 57,740/mt, respectively. The most-traded July copper contract on the SHFE finally ended at RMB 57,870/mt, down RMB 1,750/mt, or a loss of 2.94%. Positions for the most-traded July copper contract were up 39,848 lots, and trading volumes were up 7,148 lots. Long and short investors held more divergent views, but there was still large buying at low price levels, which would allow SHFE copper prices to struggle further at RMB 58,000/mt for the foreseeable future.

SHFE copper prices plunged by 2% but showed resilience, so the SHFE/LME copper price ratio failed to improve. Hedged copper, though, came into markets in large quantities, leading to a significant increase in spot copper supply. This made impossible for spot copper premiums to rise significantly with the slumping SHFE copper prices. Premiums on spot copper were quoted between positive RMB 20-80/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,880-58,000/mt, and RMB 57,920-58,050/mt for high-quality copper. Downstream producers and traders bought appropriately at low price levels, leaving market activity brisk in the morning trading. Overall supply still exceeded demand, however. In the afternoon session, as SHFE copper prices drifted slightly lower, spot copper premiums edged higher to between positive RMB 30-100/mt, while traded prices declined to between RMB 57,750-57,920/mt. Market activity remained brisk at the lows in the afternoon trading.