SHANGHAI, Jun. 21 (SMM) – As LME copper climbed stably overnight, SHFE 1210 copper contract started RMB 120/mt up at RMB 55,050/mt Wednesday. The contract hovered narrowly around the daily moving average of RMB 55,100/mt before the midday owing to severe struggle between longs and shorts, with a fluctuating band only about RMB 50/mt. In the afternoon, LME copper stabilized, so the contract drifted higher to RMB 55,200/mt and then continued to lurch, with a high touching RMB 55,330/mt, but the Shanghai Composite Index retreating below 2,300 restricted prices to move higher. However, a lot of longs closed positions five minutes before the trading was closed, causing the contract to reverse earlier gains before sliding to an intraday low of RMB 54,860/mt. Finally, SHFE 1210 copper contract ended RMB 20/mt or 0.04% lower at RMB 54,910/mt, with trading volumes and positions increasing by 19,524 lots and 6,148 lots, respectively. Trading volumes and positions for all SHFE copper contracts decreased by 18,434 lots and 9,200 lots, respectively. SHFE copper prices will test support at the 30-day moving average in the near future.
SHFE copper prices fluctuated in a narrow band. Cargo-holders in spot markets insisted on copper premiums which kept stable between positive RMB 250-320/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 55,940-55,980/mt, and RMB 55,980-56,040/mt for high-quality copper. Spot copper supply increased compared with the previous day. Some traders still chose to buy at the lows, contributing to the most to market transactions. Downstream producers, though, were still little interested in buying at RMB 56,000/mt. In the afternoon, SHFE copper prices drifted higher, but spot copper premiums held to the morning levels. Traded prices were between RMB 56,000-56,100/mt in the afternoon, entirely standing above the RMB 56,000/mt point, but copper consumption became more sluggish.