SHANGHAI, Oct. 26 (SMM) –SHFE 1301 copper contract started RMB 150/mt up at RMB 57,540/mt Thursday. Following the opening, the contract fell all the way owing to increasing short-term selling pressures, with a high at merely RMB 57,620/mt, but stopped slipping after testing support at around RMB 57,150/mt. At the tail of trading, LME copper stabilized due to a dipping US dollar, so SHFE copper prices pared some of declines before returning to around the daily moving average of RMB 57,400/mt. SHFE 1301 copper contract ended RMB 80/mt or 0.14% lower at RMB 57,230/mt. Touching a high at RMB 57,610/mt and a low at RMB 57,110/mt, SHFE 1302 copper contract settled RMB 80/mt or 0.14% lower at RMB 57,200/mt. Trading volumes and positions for SHFE 1301 copper contract decreased by 57,840 lots and 4,030 lots, respectively, while those for SHFE 1302 copper contract added by 26,818 lots and 16,496 lots, respectively. The most active copper contract was thus shifted to SHFE 1302 copper contract. SHFE copper prices found some support at RMB 57,000/mt and exhibited noticeable resilience.
As SHFE copper prices slipped all the way after starting higher, pessimism grew in spot markets, and some traders tried to bid down prices to buy. Spot copper discounts expanded continuously as a result, largely between negative RMB 150-280/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 57,050-57,170/mt, and RMB 57,150-57,170/mt for high-quality copper. Buying increased at prices around RMB 57,000/mt near the midday, helping improve market transactions. In the afternoon, SHFE copper prices stopped retreating and began stabilizing, but spot copper cargo-holders continued widening discounts to promote transactions, with discounts for high-quality copper quoted at negative RMB 200/mt and mainstream discount offers between negative RMB 170-300/mt. Traded prices were RMB 57,050-57,250/mt in the afternoon.