SHANGHAI, Oct. 10 (SMM) – SHFE 1301 copper contract, the most active one, started slightly RMB 30/mt up at RMB 59,050/mt Tuesday. Following the opening, as LME copper prices rallied, and as the Shanghai Composite Index increased significantly and recouped 2,100, SHFE copper prices rose all the way amid short-term buying and touched a low at only RMB 59,030/mt, but still met resistance at RMB 59,500/mt. In the afternoon, as short-term longs left markets, SHFE copper prices returned gradually below the daily moving average. But SHFE 1301 copper contract still settled RMB 210/mt or 0.26% higher at RMB 59,230/mt, with trading volumes and positions up by 101,000 lots and 23,306 lots, respectively. Positions for the most active copper contract exceeded 31,000 lots during the day. Short-term operations were active, and coupled with positive Chinese stock markets and buying force, SHFE copper prices were waiting opportunities to break pressures at the 5 and 10-day moving averages.
SHFE copper prices rebounded considerably, so spot copper discounts widened. Mainstream spot copper discounts were negative RMB 50-180/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 59,250-59,350/mt, and RMB 59,350-59,500/mt for high-quality copper. Cargo-holders of high-quality copper insisted on firm prices, while cargo-holders of standard-quality copper expanded discounts to move goods, increasing their price spread. As few traders and downstream producers entered markets, market activity was not seen to improve noticeably. In the afternoon, SHFE copper prices fell slightly, but copper discount quotes were little changed from morning levels. Traded prices in the afternoon were also virtually flat with morning levels, and caution still dominated markets.