SHANGHAI, Sept. 3 (SMM) -- SHFE 1212 copper contract, the most active one, started RMB 10/mt up at RMB 55,430/mt Friday. After opening, the contract largely fluctuated around RMB 55,400/mt, and then fell to test RMB 55,360/mt as China stock market lacked upward momentum and presented weak performance. However, during the afternoon trading hours, SHFE 1212 copper contract regained upward momentum and moved around RMB 55,650/mt as LME copper prices rose. At the tail of the trading, SHFE copper contract fell rapidly to close flat at RMB 55,420/mt after position closing. Trading volumes of SHFE 1212 contract reduced by 149,000 lots and positions were down by 10,430 lots. Pressure can still be felt at 5-day moving average.

In Shanghai spot market, cargo holders were actively moving goods at the weekend as SHFE copper prices extended gains, leaving premiums down to RMB 0-50/mt. Traded prices for standard-quality copper were between RMB 55,900-56,000/mt, and RMB 55,950-56,050/mt for high-quality copper. Standard-quality copper was quoted at slight discounts during the afternoon trading hours recently. Traders replenished some high-quality copper, and downstream producers only purchased on an as-needed basis, with limited transaction reported. During the afternoon trading hours, premiums for spot copper were between RMB-10-50/mt, and most high-quality copper was traded at premiums RMB 30/mt, with sluggish transactions reported.