SHANGHAI, Feb. 7 (SMM) – With LME copper hovering around current levels overnight, SHFE 1305 copper contract, the most active one, opened flat at RMB 59,850/mt Wednesday. The contract continued challenging RMB 60,000/mt following the opening due to buying support, with a high at RMB 60,160/mt, but edged down to around the RMB 60,000/mt point after suffering technical resistance. SHFE copper prices came under pressure near the midday when LME copper lost ground, and touched an intraday low of RMB 59,700/mt at the tail of trading. SHFE 1305 copper contract ended RMB 10/mt or 0.02% lower at RMB 59,840/mt, with trading volumes and positions down 253,000 lots and 5,346 lots, respectively. Despite support at the 5-day moving average, copper trading remained muted. As such, SHFE copper prices are unlikely to break existing trading range effectively for the near future.
SHFE copper prices dropped after initially rising, but spot copper discounts remained stable between negative RMB 100-250/mt in the morning business. Traded prices for standard-quality copper were between RMB 58,900-58,980/mt, and RMB 59,000-59,100/mt for high-quality copper. As most cargo-holders left markets during the second trading session, spot copper supply decreased and helped copper discounts shrink. Discounts for high-quality copper were quoted merely negative RMB 100/mt near the midday. Despite muted market activity, spot copper prices held firm as speculators were wary of purchasing. In the afternoon, SHFE copper prices slipped. Standard-quality copper supply increased, while high-quality copper decreased further, causing the price difference between the two to expand to around RMB 150/mt. Mainstream copper discounts held between negative RMB 100-250/mt in the afternoon, but traded prices inched down to RMB 58,750-59,000/mt.