SHANGHAI, Feb. 16 (SMM) – With LME copper fluctuating weakly overnight, SHFE 1305 copper contract, the most active one, opened slightly RMB 40/mt down at RMB 59,550/mt on February 8. The contract marched higher after starting down and rose to levels around the 5-day moving average of RMB 59,800/mt, as some investors bought, and since China’s copper import and export data came in favorable. In the afternoon, China’s CPI and PPI releases were also in line with market expectation, helping Chinese A-shares rebound. In this context, SHFE copper prices touched an intraday high at RMB 59,890/mt but dipped rapidly below the daily moving average at the tail of trading owing to position closings. SHFE 1305 copper contract closed RMB 100/mt or 0.17% higher at RMB 59,690/mt, with trading volumes and positions up 6,332 lots and 8,288 lots, respectively. Long and short investors conducted more severe struggle during the day. If LME copper prices hold firm during the Chinese New Year holiday period, SHFE copper prices will increase after trading is resumed.
SHFE copper prices moved higher after starting down and tended to expand daily gains. As SHFE 1302 copper contracts will be delivered during the first trading day following the Chinese New Year holiday, and since the price gap between SHFE 1302 and 1303 copper contracts widened above RMB 300/mt, spot copper cargo-holders chose to insist on firm prices during the last day before the holiday. Hence, copper offers all turned into premiums of RMB 0-100/mt in the morning business. Traded prices for standard-quality copper were between RMB 58,870-59,000/mt, and RMB 58,920-59,050/mt for high-quality copper. Market activity became extremely muted as most market players exited markets. In the afternoon, market activity became more lackluster. SHFE copper stocks decreased by 392 mt to 196,699 mt in the week ending February 8.