SHANGHAI, Jun. 13 (SMM) – As LME copper narrowed gains overnight, the most active SHFE copper contract for September delivery started RMB 800/mt down at RMB 53,620/mt Tuesday. The Shanghai Composite Index slid below 2,300 during the day and failed to support SHFE 1209 copper contract, which fluctuate in a narrow band and met great resistance at RMB 54,000/mt. In the afternoon, as LME copper met resistance to rebound, the contract sank gradually below the daily moving average to RMB 53,620/mt and finally ended at RMB 53,740/mt, down RMB 680/mt or a loss of 1.25%. Trading volumes for SHFE 1209 copper contract fell by 126,000 lots, but positions increased by 534 lots. Trading volumes for SHFE 1210 copper contract decreased by 43,128 lots, while positions added by 14,312 lots, an indication of the shift of the most active copper contract. With growing pressures, SHFE copper will continue to come under pressure over the near term, testing support at RMB 53,500/mt.
As SHFE copper prices slid by over 1%, market pessimism was growing. In this context, spot copper premium quotes narrowed to positive RMB 130-200/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 54,680-54,740/mt, and RMB 54,720-54,800/mt for high-quality copper. Cargo-holders became more willing to move goods for cash and led to a continuous increase in market supply. However, both traders and downstream producers chose to stand on the sidelines, leading to more lackluster market activity compared with the previous day. In the afternoon, as SHFE copper prices continued to come under pressure, spot copper premium quotes fell further, down to positive RMB 120-170/mt, while traded prices inched down to RMB 54,600-54,750/mt.