SHANGHAI, Jun. 19 (SMM) – As LME copper held firm overnight, SHFE 1209 copper contract, the most active one, started RMB 310/mt up at RMB 54,370/mt last Friday. After the opening, a sliding US dollar index helped LME copper break resistance at USD 7,500/mt, which caused the contract to rise all the way amid position closings. SHFE 1209 copper contract touched a high at RMB 55,120/mt in the afternoon after breaking resistance at RMB 55,000/mt. Finally, the most active copper contract closed RMB 1,010/mt or 1.87% higher at RMB 55,070/mt, with trading volumes and positions decreasing by 11,140 lots and 27,880 lots, respectively. Total trading volumes for all SHFE copper contracts added by 27,880 lots, but total positions fell by 40,286 lots. Risk aversion amongst shorts and longs grew ahead of the Greek election, and SHFE copper failed to gain entirely effective support at the 20-day moving average of RMB 54,600/mt.

SHFE copper prices rebounded noticeably by more than 1%, with the price spread between SHFE 1206 and 1207 copper contract remaining around RMB 300/mt during the last trading day for SHFE 1206 copper contract. Spot copper offers thus all turned into discounts of negative RMB 120-50/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 55,350-55,400/mt, and RMB 55,380-55,450/mt for high-quality copper. Spot copper supply remained stable. Cargo-holders held divergent views, with some actively moving goods at the highs. Others, though, chose to hold back goods owing to large discounts. However, downstream producers still stood on the sidelines, awaiting clear directions in the coming week. Overall market activity was muted as a result. In the afternoon, SHFE copper stabilized at the highs, but some traders in spot markets chose to enter the market, helping copper discount offers narrow gradually and turn into slight premiums. Mainstream spot copper offers were between discounts of negative RMB 0/mt and premiums of positive RMB 80/mt in the afternoon, while traded prices were between RMB 55,380-55,550/mt. SHFE copper stocks decreased by 2,278 mt to 130,143 mt last Friday, and the drop in stocks narrowed sharply, an indication that downstream producers’ buying was restricted at prices above RMB 55,000/mt.