SHANGHAI, Oct. 24 (SMM) –SHFE 1301 copper contract, the most active one, started slightly RMB 90/mt up at RMB 57,860/mt Tuesday. The contract slipped rapidly following the opening. As Chinese A-shares fell, SHFE copper prices completely dipped below RMB 57,500/mt in the afternoon, coming under pressure at the daily moving average and gradually moving away from this price mark. SHFE 1301 copper contract finished RMB 490/mt or 0.85% lower at an intraday trough of RMB 57,280/mt, with trading volumes and positions adding by 14,902 lots and 1,618 lots, respectively. The most active copper contract continued to shift. As short selling increased, SHFE copper prices tended to lower and test support at the 60-day moving average of RMB 56,800/mt.
As SHFE copper prices moved lower all the way, market pessimism in spot markets grew and hedged traders were eager to make profit-taking. Spot copper discounts thus expanded, largely between negative RMB 20-150/mt in Shanghai in the morning. Traded prices for standard-quality copper were between RMB 57,650-57,780/mt, and RMB 57,700-57,900/mt for high-quality copper. Traders lacked buying interest, but downstream producers opted to buy at the lows near the midday, resulting in modest market transactions in the morning. In the afternoon, SHFE copper prices staged weak performance, but spot copper cargo-holders continued moving goods aggressively, causing copper discounts to rise to negative RMB 100-180/mt. Traded prices fell to RMB 57,550-57,700/mt in the afternoon, but market transaction were not seen to increase.