SHANGHAI, Jan. 30 (SMM) – With LME copper holding flat overnight, the most active SHFE 1305 copper contract started slightly RMB 100/mt up at RMB 58,690/mt Tuesday. The contract reached a high of RMB 58,850/mt due to buying support, but slipped rapidly below the opening price as technical pressures appeared, testing a low at RMB 58,410/mt. SHFE copper prices, though, pared some of declines in the afternoon, and were driven to an intraday high of RMB 58,950/mt at the tail of trading now that the Shanghai Composite Index surged. SHFE 1305 copper contract finally ended RMB 260/mt or 0.44% higher at RMB 58,850/mt, with trading volumes and positions up 81,358 lots and 14,576 lots, respectively. As long investors took the upper hand, SHFE copper prices will strive to break existing trading range for the near future.
SHFE copper prices rose by nearly RMB 200/mt in the early trading session, but then dropped. Spot copper cargo-holders, though, quoted prices very early in the morning, and were eager to sell at highs. Spot copper supply remained plentiful as a result, but copper discounts stabilized between negative RMB 100-200/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,850-57,900/mt, and RMB 57,900-58,020/mt for high-quality copper. Downstream producers were seen to enter markets at lows, but overall market transactions remained limited and were mainly contributed by speculators, due to the approaching Chinese New Year holiday. In the afternoon, spot copper discounts expanded marginally to negative RMB 120-220/mt with SHFE copper prices paring declines and increasing. Traded prices remained basically flat with morning levels, with some traders conducting purchases.