SHANGHAI, Feb. 8 (SMM) – With LME copper sliding overnight, SHFE 1305 copper contract, the most active one, opened RMB 190/mt down at RMB 59,700/mt Thursday. The contract staged relatively stable performance during the day since prices hovered narrowly around RMB 59,600/mt after testing support at a low of RMB 58,460/mt. SHFE copper prices followed Chinese A-shares higher at the tail of trading and pared some of earlier losses, stabilizing above the daily moving average. SHFE 1305 copper contract settled RMB 190/mt or 0.32% lower at RMB 59,700/mt, with trading volumes and positions down 40,090 lots and 356 lots, respectively. With the Chinese New Year holiday approaching, both buying support and selling pressures for SHFE copper were limited. Therefore, SHFE copper prices generally followed movements in LME copper and Chinese stock markets.
With SHFE copper prices slipping and the Chinese New Year holiday nearing, spot copper market activity remained quiet. Spot copper supply was limited and helped copper discounts shrink, with price offers for high-quality copper returning to premiums. Shanghai spot copper offers were largely between discounts RMB 70/mt and premiums RMB 50/mt in the morning business. Traded prices for standard-quality copper were between RMB 58,600-58,700/mt, and RMB 58,700-58,800/mt for high-quality copper. The price differential between SHFE 1302 and 1303 copper contract widened to around RMB 400/mt, so some speculators chose to buy spot copper and sell SHFE copper contracts. Both traders and downstream producers, though, withdrew from markets, resulting in lackluster market activity. In the afternoon, as SHFE copper prices hovered in a narrow band, spot copper market activity became more lackluster, while copper offers and traded prices were both virtually unchanged from morning levels.