SHANGHAI, Jun. 28 (SMM) – As LME copper extended weakness overnight, SHFE 1210 copper contract, the most active one, started RMB 290/mt down at RMB 53,690/mt Wednesday. Shorts continued to impose selling pressures during the day, but a rebounding Shanghai Composite Index gave a boost to the contract which moved around RMB 53,700/mt with a fluctuating band of RMB 300/mt. However, the Shanghai Composite Index slid in the afternoon, causing the contract to lower to test RMB 53,420/mt but then narrow daily declines at the tail of trading due to position closings. Finally, the most active copper contract for October delivery ended RMB 240/mt or 0.44% lower at RMB 53,740/mt, with trading volumes and positions increasing by 8,126 lots and 16,124 lots, respectively. In the face of great selling pressures, SHFE copper prices entirely came under pressure at recent moving averages, but buying emerged at the lows. Longs and shorts held divergent views at RMB 53,500/mt, which should be tested repeatedly for the near future.
SHFE copper prices extended losses, so hedged copper came into spot markets. Cargo-holders were generally eager to move goods at the month-end, choosing to cut premiums immediately following the opening. Spot copper premiums thus slipped rapidly, down to positive RMB 150/mt from positive RMB 250/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 54,500-54,600/mt, and RMB 54,550-54,680/mt for high-quality copper. Downstream producers and traders were hesitant to buy owing to tight cash flows as well as bearish sentiment, leading to weak market activity in the morning. In the afternoon, SHFE copper prices trended lower, but mainstream spot copper premium quotes dipped to positive RMB 70-140/mt. Traded prices also fell to RMB 54,350-54,550/mt in the afternoon, but market activity was muted.