SHANGHAI, Jan. 9 (SMM) – With LME copper rallying from lows overnight, the most active SHFE 1304 copper contract started slightly RMB 20/mt up at RMB 58,290/mt Tuesday, and experienced fluctuations during the day. The contract dipped to a low of RMB 58,100/mt in the morning owing to falling Chinese A-shares, but climbed to RMB 58,480/mt after gaining technical support at the 5-day moving average. SHFE copper prices, however, fell gradually below the daily moving average amid position closings at the tail of trading, and narrowed daily gains, closing at RMB 58,300/mt, up RMB 30/mt or 0.05%. Trading volumes for the most active copper contracts added by 16,052 lots, positions increased by 1,460 lots. Longs and shorts conducted severe struggles, but SHFE copper prices stood above all recent moving averages but lacked further rising momentum.
SHFE copper prices rose after initially dropping. But Shanghai spot copper discounts were stable between negative RMB 60-150/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,480-57,570/mt, and RMB 57,550-57,680/mt for high-quality copper. Traders became less willing to buy, while few downstream producers opted to enter markets, leading to limited market transactions. In the afternoon, since SHFE copper prices stayed within their previous trading range, spot copper discounts and traded prices both remained virtually flat with morning levels.