SHANGHAI, Oct. 29 (SMM) -- Last Friday, SHFE 1302 copper contract prices opened RMB 270/mt lower at RMB 57,050/mt. After opening, some shorts once pushed down SHFE copper prices to RMB 56,900/mt. But copper prices then rallied to the moving averages, with the high end of the price range of RMB 57,250/mt. The Shanghai Composite Index plummeted by nearly 2% in the afternoon, pushing down LME zinc prices to USD 7,800/mt. SHFE copper prices inched down, with the low end of the price range RMB 56,670/mt. Finally, SHFE three-month zinc contract prices closed at RMB 56,680/mt, down RMB 640/mt or 1.12%. Trading volumes of SHFE three-month zinc contract increased by 61,660 lots, and total position increased by 10,466 lots.
In domestic spot markets, SHFE copper prices opened lower and moved weakly. Cargo holders maintained discounts unchanged between RMB 150-270/mt. Traded prices of standard-quality copper were between RMB 56,950-57,000/mt, and traded prices for high-quality copper were between RMB 57,000-57,100/mt. But cargo holders of standard-quality copper were unwilling to expand discounts and kept prices firm, allowing the price spread with high-quality copper to narrow. Many investors continued to purchase at lower prices. Purchases by downstream buyers increased below RMB 57,000/mt, with transactions improving. SHFE copper prices extended declines in the afternoon, while cargo holders were unwilling to the sell goods, with mainstream discounts between RMB 80-170/mt, and with traded prices between RMB 56,750-56,950/mt. Downstream buyers were more cautious. SHFE copper inventories last week fell by 3,949 mt, to 192,761 mt, showing there were buyers at lower prices. That will allow domestic copper prices to resist declines.