SHANGHAI, Jan. 18 (SMM) – With LME copper prices slipping further overnight, SHFE 1304 copper contract, the most active one, started RMB 100/mt down at RMB 57,890/mt Thursday. The contract continued falling following the opening as LME copper prices remained weak, and since Chinese A-shares retreated 1%, with prices testing a low at RMB 57,570/mt. However, SHFE copper prices rallied above the daily moving average at the tail of trading after gaining technical support. SHFE 1304 copper contract finally ended RMB 250/mt or 0.43% lower at RMB 57,740/mt, with trading volumes decreasing 31,910 lots but positions adding by 118 lots. SHFE copper prices fluctuated lower and found weak support at the 30-day moving average. With wait-and-see sentiment growing and technical indicators pointing down, markets are pessimistic over future copper outlook.
As SHFE copper prices slipped, copper discounts shrank to negative RMB 120-180/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,250-57,280/mt, and RMB 57,280-57,350/mt for high-quality copper. Cargo-holders showed little reluctance in moving goods at lows, leading to a drop in market supply. Prices of domestic standard-quality copper held firm, so the price gap between standard and high-quality copper was limited. With wait-and-see sentiment dominating markets, downstream producers still sourced to need, resulting in market oversupply. In the afternoon, SHFE copper prices stabilized, but spot copper supply decreased further, helping copper discounts narrow slightly to negative RMB 100-170/mt. Traded prices were RMB 57,270-57,370/mt in the afternoon, but actual market deals were limited.