SHANGHAI, Jan. 24 (SMM) – With LME copper fluctuating near current levels overnight, SHFE 1304 copper contract started RMB 190/mt up at RMB 58,750/mt Wednesday. The contract slid rapidly as a large number of long investors closed positions, with a high at only RMB 58,790/mt. SHFE copper prices touched a trough of RMB 58,460/mt in the afternoon, but stopped falling after winning technical support. Paring some of gains, SHFE 1304 copper contract ended RMB 30/mt or 0.05% higher at RMB 58,590/mt, with trading volumes and positions down 53,232 lots and 7,066 lots, respectively. Trading volumes and positions for SHFE 1305 copper contract decreased by 51,178 lots and 7,104 lots, respectively. The most active copper contract did not shift to SHFE 1305 copper contract. Since more long investors made profit-taking, SHFE copper prices lacked further rising momentum. Nevertheless, the low-end SHFE copper price rose with technical indicators pointing upside.
SHFE copper prices moved down after starting higher, but cargo-holders held divergence views towards future markets, quoting mixed prices. Some cargo-holders were eager to sell for cash and caused discounts to expand. Overall spot copper supply was plentiful. Shanghai spot copper discounts were mainly between negative RMB 120-240/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,900-57,950/mt, and RMB 57,980-58,050/mt for high-quality copper. Both traders and downstream producers generally refrained from purchasing at prices above RMB 58,000/mt, which caused market transactions to stagnate. In the afternoon, SHFE copper prices hovered in a narrow range, while copper supply remained stable. However, standard-quality copper cargo-holders narrowed discounts to move goods, and mainstream copper discounts were negative RMB 130-200/mt. Traded prices in the afternoon saw no major changes from morning levels as downstream producers mostly expressed no buying interest, keeping market activity quiet.