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SMM Daily Review – 2012/4/24 Copper Market
Apr 25,2012 08:54CST
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Source:SMM
SHFE 1207 copper contract for delivery in July opened RMB 260/mt lower at RMB 57,410/mt Tuesday. Spot copper discounts were between negative RMB 70-20/mt in the morning business.

SHANGHAI, Apr. 25 (SMM) –As LME copper prices continued to fall overnight, the most-traded SHFE copper contract for delivery in July opened RMB 260/mt lower at RMB 57,410/mt Tuesday. Chinese stock markets tested support at the 5-day moving average during the day. SHFE copper prices lurched narrowly around RMB 57,500/mt, testing a low at RMB 57,200/mt and reaching a high at RMB 57,840/mt. SHFE 1207 copper contract prices finally ended RMB 70/mt or 0.12% lower at RMB 57,600/mt, with trading volumes increasing by 32,418 lots but positions decreasing by 35,398 lots. Positions for SHFE 1208 copper contract were up by 11,558 lots. Long and short investors struggled at levels around RMB 57,500/mt.

As SHFE copper prices experienced volatilities, the price gap among all SHFE copper contracts was reverted, leaving little speculative room. The SHFE/LME copper price ratio remained unfavorable, causing cargo-holders to reduce sale volumes. Spot copper supply thus decreased, leading spot copper discounts to be quoted between negative RMB 70-20/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,380-57,560/mt, and RMB 57,420-57,680/mt for high-quality copper. Owing to cash flow problems at the month’s end, both traders and downstream producers stuck to the sidelines. In the afternoon business, as SHFE copper prices continued to fluctuate in a narrow band, and as spot copper supply decreased further, spot copper discounts fell marginally to negative RMB 60-20/mt. Cargo-holders of standard-quality copper especially insisted on higher price quotations, but the highest traded price was lower than the morning business level, leaving market activity lackluster. 
 

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