SHANGHAI, Apr. 18 (SMM) –The most-traded SHFE copper contract for delivery in July opened RMB 170/mt up at RMB 57,020/mt Tuesday, since LME copper prices recouped the USD 8,000/mt mark Monday. Large-scale sell-offs emerged immediately after the opening, and LME copper prices lost USD 8,000/mt again due to an increasing US dollar, both of which led SHFE copper prices to drift lower to RMB 56,850/mt, with a high only at RMB 57,090/mt. In the afternoon business, the Shanghai Composite Index slid by 1%, dragging down SHFE copper prices which gathered falling momentum at the tail of trading and slid to a low at RMB 56,490/mt. Finally, SHFE 1207 copper contract prices ended RMB 320/mt or 0.56% lower at RMB 56,530/mt, with trading volumes decreasing by 31,608 lots and positions increasing by 17,546 lots. Owing to the existing selling pressures, SHFE copper prices are likely to continue to post weak performance for the near future.
SHFE copper prices trended lower after a high open. But SHFE 1204 copper contracts had been delivered, causing spot copper premiums to narrow between positive RMB 0-50/mt in the morning business. Traded prices for standard-quality copper were between RMB 56,800-56,850/mt, and RMB 56,830-56,900/mt for high-quality copper. The price gap among all SHFE copper contracts was extremely limited, leaving nearly no speculative room. Cargo-holders hesitated in moving goods and quoted high prices. The price differential between standard- and high-quality copper was also very small. Downstream producers generally stood on the sidelines in the face of unstable prices in the morning session, brining market activity into stalemate. In the afternoon business, SHFE copper prices kept weak performance, but consumption failed to improve, which led spot copper offers to stand between discounts of negative RMB 20/mt and premiums of positive RMB 30/mt. Traded prices inched down to between RMB 56,700-56,850/mt in the afternoon session, which heightened bearish sentiment, resulting in limited market transactions.