SMM Daily Review – 2012/6/14 Copper Market

SMM Insight 09:08:46AM Jun 15, 2012 Source:SMM

SHANGHAI, Jun. 15 (SMM) – As LME copper narrowed gains overnight, SHFE 1209 copper contract, the most active one, started RMB 140/mt down at RMB 53,820/mt Thursday. After the opening, as longs bought SHFE 1210 copper contract in large quantities, SHFE 1209 copper contract was pushed up stably. Near the midday, LME copper rose rapidly by nearly USD 100/mt, helping the most active copper contract on the SHFE increase above RMB 54,000/mt before quickly hitting an intraday high at RMB 54,410/mt. However, in the afternoon session, as LME copper retreated below USD 7,400/mt on a rallying US dollar index, and since the Shanghai Composite Index slid below 2,300, SHFE copper sank below the daily moving average and gradually narrowed daily gains. But SHFE 1209 copper contract still closed RMB 130/mt or 0.24% higher at RMB 54,090/mt, with trading volumes increasing by 55,684 lots but positions falling by 8,394 lots. Trading volumes and positions for SHFE 1210 copper contract added by 78,446 lots and 21,810 lots, respectively, highlighting the continuous shift of the most active copper contract. SHFE copper found temporary support at RMB 53,500/mt.

SHFE copper prices started lower, but the SHFE/LME copper price ratio continued to improve, propelling cargo-holders in spot markets to move goods for cash. However, domestic copper cargo-holders were unwilling to sell. Spot copper premiums were quoted between positive RMB 20-100/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 54,700-55,000/mt, and RMB 54,750-55,100/mt for high-quality copper. Some traders opted to buy owing to a drop in premiums on high-quality copper, while the price differential between SHFE 1206 and 1207 copper contract prevailed. Downstream producers, though, kept on their toes. SHFE copper prices rose rapidly by nearly RMB 300/mt near the midday, restricting spot copper market activity, and causing spot copper premiums fall sharply to below positive RMB 100/mt. In this context, market transactions stagnated at prices above RMB 55,000/mt. In the afternoon, SHFE copper fell from early highs, but most cargo-holders in spot copper market quoted discounts and enticed some traders to enter the market ahead of the delivery day for SHFE current-month copper contract. Traded prices slid to RMB 54,950-55,050/mt in the afternoon.

 

SMM Daily Review – 2012/6/14 Copper Market

SMM Insight 09:08:46AM Jun 15, 2012 Source:SMM

SHANGHAI, Jun. 15 (SMM) – As LME copper narrowed gains overnight, SHFE 1209 copper contract, the most active one, started RMB 140/mt down at RMB 53,820/mt Thursday. After the opening, as longs bought SHFE 1210 copper contract in large quantities, SHFE 1209 copper contract was pushed up stably. Near the midday, LME copper rose rapidly by nearly USD 100/mt, helping the most active copper contract on the SHFE increase above RMB 54,000/mt before quickly hitting an intraday high at RMB 54,410/mt. However, in the afternoon session, as LME copper retreated below USD 7,400/mt on a rallying US dollar index, and since the Shanghai Composite Index slid below 2,300, SHFE copper sank below the daily moving average and gradually narrowed daily gains. But SHFE 1209 copper contract still closed RMB 130/mt or 0.24% higher at RMB 54,090/mt, with trading volumes increasing by 55,684 lots but positions falling by 8,394 lots. Trading volumes and positions for SHFE 1210 copper contract added by 78,446 lots and 21,810 lots, respectively, highlighting the continuous shift of the most active copper contract. SHFE copper found temporary support at RMB 53,500/mt.

SHFE copper prices started lower, but the SHFE/LME copper price ratio continued to improve, propelling cargo-holders in spot markets to move goods for cash. However, domestic copper cargo-holders were unwilling to sell. Spot copper premiums were quoted between positive RMB 20-100/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 54,700-55,000/mt, and RMB 54,750-55,100/mt for high-quality copper. Some traders opted to buy owing to a drop in premiums on high-quality copper, while the price differential between SHFE 1206 and 1207 copper contract prevailed. Downstream producers, though, kept on their toes. SHFE copper prices rose rapidly by nearly RMB 300/mt near the midday, restricting spot copper market activity, and causing spot copper premiums fall sharply to below positive RMB 100/mt. In this context, market transactions stagnated at prices above RMB 55,000/mt. In the afternoon, SHFE copper fell from early highs, but most cargo-holders in spot copper market quoted discounts and enticed some traders to enter the market ahead of the delivery day for SHFE current-month copper contract. Traded prices slid to RMB 54,950-55,050/mt in the afternoon.