SHANGHAI, Jun. 14 (SMM) – SHFE 1209 copper contract started RMB 190/mt higher at RMB 53,960/mt Wednesday, and then fluctuated around RMB 54,000/mt. In the afternoon, as the Shanghai Composite Index broke resistance at 2,300 and surged by 1.3%, and since LME copper rallied from the lows, the contract climbed to RMB 54,140/mt and completely stood above the daily moving average. Finally, SHFE 1209 copper contract settled RMB 300/mt or 0.56% higher at RMB 54,070/mt, with trading volumes and positions falling by 35,142 lots and 5,992 lots, respectively. Positions for all SHFE copper contracts decreased by 7,170 lots. Trading sentiment weakened noticeably during the week, so SHFE copper should stay volatile ahead of the Greek election.
SHFE copper prices rebounded marginally, with the price spread between SHFE 1206 and 1207 copper contract still standing around RMB 400/mt. Cargo-holders in spot markets thus were actively moving goods, resulting in sufficient market supply. Hence, spot copper premium quotes narrowed to positive RMB 70-140/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 54,780-54,820/mt, and RMB 54,820-54,900/mt for high-quality copper. Traders tried to bid down premiums on high-quality copper, contributing the most to market transactions, while downstream producers still sourced to order. Therefore, overall market supply still exceeded demand. In the afternoon, SHFE copper prices stabilized and began moving higher, but as some speculators in spot markets chose to enter the market, spot copper premium offers stayed virtually unchanged from the morning levels. The highest traded price reached nearly RMB 55,000/mt in the afternoon, but overall market transactions were smaller than the morning.