SHANGHAI, Oct. 19 (SMM) – SHFE 1301 copper contract, the most active one, increased immediately after starting marginally up at RMB 58,900/mt Thursday, and hovered between RMB 59,150-59,250/mt before climbing to RMB 59,340/mt before 10 am. After 10 am, China’s GDP for 3Q was in line with market expectation, so SHFE copper prices edged down as some longs and shorts closed positions, but maintained above the daily moving average during the day. SHFE 1301 copper contract closed RMB 420/mt higher at RMB 59,130/mt, with positions down by 2,794 lots but trading volumes up slightly by 1,456 lots. SHFE copper’s bottom price drifted higher and tended to break through the 20-day moving average.
Mainstream spot copper discounts were negative RMB 100-250/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 58,900-58,960/mt, and RMB 59,000-59,150/mt for high-quality copper. SHFE copper prices rebounded and hovered at the highs, so spot copper supply was diversified and cargo-holders were eager to move goods for cash at the highs. But downstream producers expressed low interest in entering markets, and lead to muted market activity. Spot copper discounts expanded considerably, and the price gap between standard and high-quality copper reached RMB 150/mt. Speculators were also unwilling to make purchases owing to no speculative opportunities, resulting in oversupply. In the afternoon, as SHFE copper prices remained little changed, spot copper discounts were also basically flat with morning levels. Market activity was also not seen to improve, although traded prices fell slightly to RMB 58,850-59,070/mt.