SHANGHAI, Jun. 7 (SMM) – The most active SHFE copper contract for September delivery started slightly RMB 50/mt higher at RMB 53,530/mt Wednesday. After the opening, the contract sank rapidly to around the previous session’s low of RMB 53,230/mt, but then was pushed higher by longs who bought at the lows. Nevertheless, SHFE 1209 copper contract met short selling at the RMB 54,000/mt point and began to slide following resistance at RMB 53,950/mt. At the tail of trading, as the Shanghai Composite Index lowered to test support at 2,300, and since investors closed positions on a large scale, SHFE 1209 copper contract retreated further, fluctuating around the daily moving average of RMB 53,750/mt before finally ending at RMB 53,820/mt, still a gain of RMB 350/mt or 0.65%. Trading volumes for the most active copper contract added by 74,120 lots, while positions decreased by 14,794 lots. SHFE copper prices stopped falling and began stabilizing for a second straight day, but suffered great resistance at the 5-day moving average, and both shorts and shorts were wary of operations in the context of copper price rebounds. SMM believes selling pressures at the highs and buying at the lows will help domestic copper prices extend the fluctuating trend over the near term.
SHFE copper prices stopped falling and began stabilizing, enticing downstream producers in spot markets to step up purchase volumes at lower price levels. Cargo-holders kept moving goods aggressively for cash, leading to sufficient market supply. Spot copper premiums were quoted between positive RMB 250-300/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 54,700-54,820/mt, and RMB 54,730-54,850/mt for high-quality copper. The proportion of imported copper supply to overall supply was increasing, while the price gap between standard-quality imported and domestic copper widened. Traders opted opportunities to enter markets, helping boost market activity in the morning. In the afternoon session, as SHFE copper prices came under pressure, spot copper premiums became steady. Traded prices, however, fell to RMB 54,650-54,800/mt.