SHANGHAI, May 7 (SMM) – As LME copper prices continued to absorb negative news overnight, SHFE 1208 copper contract opened RMB 300/mt lower at RMB 58,000/mt Friday. After the opening, SHFE copper prices were pushed up rapidly after falling by RMB 100/mt, drifting narrowly higher along with moving averages but failing to reach RMB 58,250/mt near the midday. In the afternoon, SHFE copper prices inched down but then rose again before hitting an intraday high at RMB 58,350/mt. SHFE 1208 copper contract finally ended the day at RMB 58,310/mt, up RMB 210/mt or 0.36%, paring some of the prior day’s losses and testing support at the 20-day moving average. Trading volumes for SHFE 1208 copper contract fell by 22,920 lots, and positions slid by 5,532 lots. Both long and short investors kept cautious ahead of the US non-farm payrolls report. Short investors closed positions actively in the afternoon, and SHFE copper showed resilience but legged behind LME copper.
SHFE copper prices moved higher after a low open, exhibiting strong resilience, Spot copper premiums were quoted between positive RMB 30-100/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 58,150-58,280/mt, and RMB 58,180-58,320/mt for high-quality copper. Quotations for spot copper premiums slid after initially increasing. A premium near positive RMB 100/mt restricted speculative interest, while downstream producers still bought as needed given limited drops in copper prices. Market activity was comparatively modest at the lows in the morning, but become sluggish as copper prices moved higher. In the afternoon session, traded prices rose to RMB 58,250-58,350/mt, while spot copper premiums held firm. Owing to sufficient supply, market transactions improved some.