SHANGHAI, Apr. 16 (SMM) –The most-traded July copper contract on the SHFE opened RMB 660/mt higher at RMB 58,800/mt last Friday, since LME copper prices rebounded in the previous session. SHFE copper prices trended lower after the opening on growing sell-offs. After China later announced its GDP for 1Q fell sharply from the prior data, both SHFE and LME copper prices retreated, with the latter easing falling momentum in the afternoon business after gaining support at the 5-day moving average. The Shanghai Composite Index extended increases in the afternoon session, so SHFE copper prices lurched narrowly around RMB 58,300/mt but lost all daily gains to test a low at RMB 58,000/mt at the tail of trading as selling pressures dampened markets again. Finally, the most-traded SHFE copper contract prices ended at RMB 58,030/mt, down RMB 110/mt or 0.19%, with positions increasing by 16,586 lots but trading volumes decreasing by 11,606 lots. SHFE copper prices suffered high resistance at RMB 58,700/mt, with RMB 58,000/mt remaining the struggle between long and short investors.

As SHFE copper prices opened higher in the morning session, spot copper only traded at slightly premiums of around positive RMB 30/mt, enticing some speculators to enter the market. SHFE copper prices then slid all the way, but SHFE 1207 copper contract prices showed resilience and registered relatively smaller declines. SHFE near-term copper contract prices remained weaker than forward contract prices. In this context, cargo-holders in spot copper markets withheld goods, causing supply to decrease gradually. Spot copper premiums therefore rose to around positive RMB 100/mt. Mainstream spot copper premiums were quoted between positive RMB 30-120/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,900-58,000/mt in the morning session, and RMB 57,950-58,150/mt for high-quality copper, with downstream producers continuing to exhibit buying interest at prices below RMB 58,000/mt. In the afternoon business, SHFE copper prices continued to fall, and spot copper supply remained limited, both of which helped spot copper premiums hold firm between positive RMB 60-120/mt. Traded prices, though, declined to between RMB 57,750-58,050/mt in the afternoon session, while market transactions were slightly down from the morning business levels. SHFE copper inventories were reported to decrease by 265 mt to 221,827 mt last Friday.