SHANGHAI, Oct. 12 (SMM) –As LME copper prices remained weak overnight, SHFE 1301 copper contract, the most active one, started RMB 110/mt down at RMB 58,750/mt Thursday. Following the opening, the contract remained weak, but a lot of investors began buying forward copper contracts when copper prices fell to a low at RMB 58,500/mt. SHFE copper prices rose considerably and broke resistance at RMB 59,000/mt before the midday, and touched a high at RMB 59,200/mt. In the afternoon, falling Chinese A-shares caused SHFE copper prices to lurch narrowly around the RMB 59,000/mt point and narrowed daily gains at the tail of trading. SHFE 1301 copper contract settled at RMB 58,980/mt, still up RMB 120/mt or 0.2%, with trading volumes up 88,526 lots but positions down 9,266 lots. Trading volumes and positions for SHFE 1302 copper contract added by 19,806 lots and 8,288 lots respectively. SHFE copper prices still suffered upside pressure, but should move around the 20-day moving average over the near term owing to buying support, and will continue to test support at the low of RMB 58,300/mt.
SHFE copper prices rose after initially falling, but spot copper cargo-holders offered prices very early in the morning and wanted to move goods at the lows. Spot copper discounts thus failed to narrow. Near the midday, as SHFE copper prices increased with forward copper contracts also rising, bearish sentiment weakened some and spot market activity also improved. Discounts for standard-quality copper widened above negative RMB 200/mt, while expansion in discounts for high-quality copper was limited. Buying increased as SHFE copper prices moved higher. Mainstream spot copper discount quotes were negative RMB 20-220/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 58,750-58,970/mt, and RMB 58,850-59,150/mt for high-quality copper. Traders entered markets at the lows, and downstream producers still bought as needed. Market transactions increased after initially falling. In the afternoon, as SHFE copper prices slipped slightly, spot copper discounts narrowed to negative RMB 50-150/mt, while traded prices were basically flat with morning levels.