SHANGHAI, Jun. 27 (SMM) –As LME copper rallied overnight, SHFE 1210 copper contract, the most active one, opened RMB 160/mt higher at RMB 54,330/mt Tuesday. The Shanghai Composite Index continued to slip, causing the contract to come under downward pressures after briefly touching a high of RMB 54,480/mt. In the afternoon, SHFE copper prices fell below RMB 54,000/mt under the influence of slumping LME copper prices and dipped to as low as RMB 53,480/mt, experiencing two rounds of dives amid short selling. Finally, the most active SHFE copper contract ended at RMB 53,620/mt, down RMB 550/mt or 1.02%. Trading volumes and positions increased 114,000 lots and 93,352 lots, respectively. Given the downtrend of technical indicators and selling pressures, the support at RMB 53,500/mt for SHFE copper prices was weak.

SHFE copper prices were under downward pressures, so cargo-holders in spot markets were eager to sell goods for cash as June ends. Imported and domestic copper flowed into the market as a result, creating great pressures on spot copper markets and causing spot premiums to keep narrowing all the way. Spot copper premium quotes were between positive RMB 250-330/mt in Shanghai in the morning business Tuesday. Traded prices for standard-quality copper were between RMB 55,180-55,240/mt, and RMB 55,240-56,320/mt for high-quality copper. Near the midday, premiums for high-quality copper nearly lost positive RMB 300/mt, and some dealers with adequate liquidity took the chance to purchase, but downstream buyers were still unwilling to buy, leaving supply exceeding demand. In the afternoon, SHFE copper prices gathered the falling momentum, but spot copper market activity virtually stagnated. Spot copper premium offers fell to positive RMB 200-300/mt, while traded prices were between RMB 54,800-55,050/mt, losing the RMB 55,000/mt point. Market pessimism grew after copper prices dived, so spot copper prices are likely to be dampened further as the end of the month approaches.