SHANGHAI, May 9 (SMM) – LME copper prices rallied on the falling US dollar Tuesday morning, which helped the most actively-traded SHFE 1208 copper contract start RMB 370/mt higher at RMB 57,900/mt. However, as Chinese stock markets lowered to test support at the 5-day moving average, the contract continued to fluctuate in a narrow band of RMB 150/mt during the whole trading day, with noticeable resistance at RMB 58,000/mt. At the tail of trading, while investors closed positions, SHFE 1208 copper contract retreated below the daily moving average, but finally ended RMB 120/mt or 0.21% higher at RMB 57,650/mt. Trading volumes for the most actively-traded copper contract decreased by 21,164 lots, while positions increased by 8,200 lots. With intersection between the 10- and 20-day moving averages, SHFE copper prices faced increasing pressures near RMB 57,900/mt.
As SHFE copper prices rebounded marginally, quotations for spot copper premiums fell to positive RMB 40-80/mt in Shanghai in Tuesday’s morning business. Traded prices for standard-quality copper were between RMB 57,980-58,030/mt, and RMB 58,020-58,080/mt for high-quality copper. Some cargo-holders quoted firm prices as copper prices exhibited resilience. Spot copper supply remained stable, but market activity failed to improve in the morning. In the afternoon, SHFE copper prices moved at high levels but began to slide rapidly at the tail of trading, compelling cargo-holders in spot markets to step up sale volumes. Thus, spot copper premiums held virtually flat with the morning business levels. Traded prices were between RMB 57,980-58,100/mt in the afternoon, while market transactions remained limited.