SHANGHAI, Jan. 28 (SMM) –The Shanghai Composite Index dipped below 2,300 during the past week. China's copper output hit a historical high as well, so SHFE copper prices had little upward momentum and moved largely between RMB 58,200-58,800/mt, a gain of only 0.09% for the week. The most active copper contracts also shifted to SHFE 1305 copper contracts.
As copper futures prices drifted higher last week, traded prices for spot copper also rose gradually to RMB 58,000/mt on Friday. Copper discounts remained stable between RMB 120-220/mt as cargo-holders moved goods aggressively at highs, which kept market supply plentiful. Downstream producers refrained from purchasing at prices above RMB 58,000/mt, but continued buying as needed at lows. The overall copper supply surplus was still pronounced, and with market deals largely made by traders.
SHFE copper prices in the coming week will probably find solid support at RMB 58,500/mt before challenging RMB 59,000/mt.