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SMM Copper Market Daily Review (2012-10-19)
Oct 22,2012 08:43CST
price review forecast
Source:SMM
SHFE 1301 copper contract settled RMB 690/mt or 1.17% lower at RMB 58,460/mt last Friday, and SHFE copper stocks added by 15,196 mt to 196,710 mt.

SHANGHAI, Oct. 22 (SMM) – As LME copper prices fell after initially increasing overnight, SHFE 1301 copper contract, the most active one, started flat at RMB 59,150/mt last Friday. The contract dipped after temporarily rising to RMB 59,200/mt following the opening, and then fluctuated narrowly around RMB 59,060/mt in the first trading session. As Chinese A-shares slipped, SHFE copper prices continued falling in the second trading session and drifted lower to RMB 58,500/mt in the afternoon before touching an intraday trough at RMB 58,380/mt. Moving gradually away from the daily moving average, SHFE 1301 copper contract settled RMB 690/mt or 1.17% lower at RMB 58,460/mt, with trading volumes and positions up by 22,704 lots and 4,168 lots, respectively. The most active copper contract came under pressure at the 20-day moving average due to short selling and was likely to lose support at the 30-day moving average.
  
Spot copper discounts were negative RMB 60-240/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 58,580-58,780/mt, and RMB 58,680-59,020/mt for high-quality copper. As SHFE copper prices started flat and fluctuated, spot copper discounts stabilized between negative RMB 100-240/mt, and merely discounts for the “Guixi” brand were quoted negative RMB 80/mt but received little response from markets. At 11 am, SHFE copper prices were dragged down below RMB 59,000/mt owing to the falling Chinese A-shares, so some spot copper cargo-holders narrowed discounts to negative RMB 60-180/mt, but downstream producers awaited lower price levels. Near the midday, forward SHFE copper contracts gained falling momentum and compelled hedged traders to take profit-taking. Spot copper discounts thus remained between negative RMB 80-220/mt, still failing to entice market buyers. In the afternoon, SHFE copper prices slipped to RMB 58,600/mt, but declines in forward SHFE copper contracts narrowed, depressing hedged trading and helping spot copper discounts hold between negative RMB 50-200/mt. Traded prices fell to RMB 58,300-58,550/mt in the afternoon, but spot market activity was not seen to improve. SHFE copper stocks added by 15,196 mt to 196,710 mt last Friday, highlighting market oversupply.

 

SHFE copper prices
SHFE copper stocks
Shanghai copper discounts

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