SHANGHAI, May 14 (SMM) – The most active SHFE 1208 copper contract started RMB 120/mt higher at RMB 57,680/mt Friday, as LME copper prices pared losses overnight. After the opening, SHFE copper prices met resistance at the 20-day moving average and then drifted lower to RMB 57,500/mt along with selling pressures, only touching a high at RMB 57,720/mt. In the afternoon, the Shanghai Composite Index lost 2,400, which sent SHFE copper prices down to around RMB 57,350/mt before sliding to as low as RMB 57,250/mt. Finally, SHFE 1208 copper contract ended RMB 220/mt or 0.38% lower at RMB 57,340/mt, with trading volumes and positions increasing by 37,798 lots and 12,834 lots, respectively. Positions for 1209 copper contract added by 13,068 lots. SHFE copper prices still found support at RMB 57,000/mt but faced increasing selling pressures.
SHFE copper prices were volatile, but spot copper supply remained stable. Spot copper premiums thus fell gradually to between positive RMB 20-80/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 57,720-57,820/mt, and RMB 57,750-57,880/mt for high-quality copper. Cargo-holders held divergent views towards volatile copper prices, while downstream producers were still wary of purchases, keeping market activity modest in the morning session. In the afternoon business, SHFE copper prices drifted lower, so spot copper premiums inched up to positive RMB 40-100/mt, but traded prices fell marginally to RMB 57,700-57,800/mt, with limited market transactions. SHFE copper stocks decreased by 9,178 mt to 187,449 mt last Friday, as downstream producers conducted bargain hunting at prices below RMB 58,000/mt, and since domestic copper smelters and trading firms stepped up efforts in delivering copper to the LME warehouses.
