SHANGHAI, Feb. 8 (SMM) – China's central bank conducted as much as RMB 450 billion in reverse repurchases in a single day last week, but Chinese A-shares continued to fluctuate at current levels. SHFE copper prices followed LME copper down, but still exhibited strong resilience, with a high challenging RMB 60,270/mt. Nevertheless, SHFE copper prices retreated to around RMB 59,500/mt later in the week as both trading volumes and positions fell sharply due to the approaching Chinese New Year holiday.
In China's spot markets, with SHFE copper prices falling, copper discounts shrank gradually and turned to premiums later in the week. Earlier, though, downstream producers bought at lows while some speculators purchased high-quality copper. Spot copper market activity later in the week turned quiet as most market players exited markets.
The SHFE copper market in the coming week will be closed for the Chinese New Year holiday, but SHFE copper prices are likely to increase once trading is resumed.