SHANGHAI, Oct. 25 (SMM) -- On Wednesday, SHFE 1301 copper contract prices opened RMB 310/mt lower at RMB 57,260/mt. After opening, some shorts closed positions with profit-taking, so SHFE copper prices surged but then fell to fluctuate around the moving averages during the day, with the low end of RMB 57,110/mt. At the end of trading, SHFE copper prices rose to RMB 57,580/mt, and finally SHFE three-month zinc contract prices closed at RMB 57,500/mt, down RMB 70/mt or 0.12%. Trading volumes of SHFE three-month zinc contract decreased by 14,910 lots, and total position decreased by 14,270 lots. Trading volumes of SHFE 1302 zinc contract increased by 32,034 lots, and total position increased by 14,238 lots. Domestic copper prices resisted declines compared to LME copper prices. Purchases at lower prices increased, and copper price volatility should improve.
In domestic spot markets, SHFE copper prices extended declines, with traders continuing to generate cash. The SHFE/LME copper price ratio improved, allowing copper imports to grow and copper supply to increase. Spot discounts fell along with futures prices, with discounts between USD 100- 220/mt. Traded prices of standard-quality copper were between RMB 57,120-57,250/mt, and traded prices for high-quality copper were between RMB 57,200-57,380/mt. Traders were cautious due to continuously falling prices, and downstream buyers purchased on an as-needed basis, with pessimism prevailing in the market. SHFE copper prices remained fluctuating at the same levels in the afternoon, and rose at the end of trading. Quotes for standard-quality remained the levels in the morning, but discounts of high-quality copper expanded, with the low end of the price range of RMB 140/mt. Traded prices were close to the morning trading, and some downstream buyers entered the market, with transactions improving.