SHANGHAI, Jun. 29 (SMM) – As LME copper stabilized overnight, SHFE 1210 copper contract, the most active one, started RMB 670/mt higher at RMB 54,300/mt Thursday. After the opening, both longs and shorts chose to close positions on a large scale, and the Shanghai Composite Index retreated below 2,200, causing the contract to fall after climbing to RMB 54,400/mt. SHFE 1210 copper contract came under pressure at the daily moving average during the whole session, and tested a low at RMB 54,060/mt. Finally, the most active copper contract for October delivery ended RMB 570/mt or 1.06% up at RMB 54,200/mt, with trading volumes and positions decreasing by 136,000 lots and 27,128 lots, respectively. The turnover rate exceeded 130% amid position closings. SHFE copper prices are not expected to see any major changes in movements Friday, the last trading of this month, awaiting new directions for the second half of this year.
SHFE copper prices rebounded by 1%, so spot copper premiums narrowed considerably, and some cargo-holders of standard-quality copper even offered discounts. Spot copper offers were between discounts of negative RMB 30/mt and premiums of positive RMB 70/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 54,700-54,850/mt, and RMB 54,750-54,900/mt for high-quality copper. Spot copper supply remained stable, but consumption remained sluggish, leaving market in surpluses. In the afternoon, SHFE copper prices stabilized, but cargo-holders in spot markets had to settle accounts at the month-end, causing spot copper supply to decrease from the morning levels. Spot copper offers thus were between premiums of positive RMB 0-70/mt in the afternoon, while traded prices were little changed.