SHANGHAI, Oct. 18 (SMM) -- LME copper prices overnight closed up. SHFE three-month copper contract prices opened slightly higher at RMB 58,830/mt, and climbed to RMB 58,980/mt in the morning trading. As the Shanghai Composite Index fell whilst the US dollar index rose as of 10:00 am, LME copper prices were pushed down, allowing SHFE copper prices to drop rapidly. Later in the day, SHFE did not found support until dipping to RMB 58,480/mt, and fell further in the afternoon after touching RMB 58,750/mt. Finally, SHFE three-month copper contract prices closed at RMB 58,660/mt, down RMB 100/mt. Total position increased by only 472 lots, and trading volumes increased by nearly 20,000 lots to 176,000 lots. SHFE three-month copper contract prices closed down, with strong resistance at RMB 59,000/mt.
Spot discounts of refined copper in Shanghai were RMB 80-200/mt. Traded prices for standard-quality copper were RMB 58,450-58,530/mt, and for high-quality copper were RMB 58,520-58,780/mt. SHFE copper prices opened higher but moved lower. Traders were actively moving goods at higher prices to generate cash, keeping spot copper supply ample, and with spot discounts expanding. In the second trading section, copper prices slid rapidly, and traders were holding high-quality copper, with spot discounts narrowing. But supply was still sufficient as arbitragers continued to generate cash. Standard-quality copper was sold massively with high discounts, and downstream purchases increased at lower prices. But traders were expecting increasing spot discounts. In the afternoon, SHFE copper prices were weighed down further, and spot discounts remained between RMB 80-200/mt, while spot prices fell to RMB 58,500-58,650/mt. The short momentum improved, and transactions remained quiet.