SHANGHAI, Feb. 25 (SMM) –As LME copper continued weakness overnight, SHFE 1305 copper contract, the most active one, opened slightly RMB 40/mt down at RMB 57,570/mt Friday. The contract stabilized gradually amid some buying support with a low at merely RMB 57,360/mt but a high at RMB 57,780/mt. In the afternoon, as Chinese stock markets dropped, SHFE copper prices fluctuated near current levels. SHFE 1305 copper contract ended at RMB 57,620/mt, up RMB 20/mt or a gain of 0.02%, with trading volumes and positions down 121,000 lots and 7,038 lots, respectively. Total trading volumes on the SHFE decreased by 191,000 lots, but total positions added by 25,584 lots. The most active copper contract continued to shift. With the divergence between long and short investors increasing, SHFE copper prices are likely to look for support at much lower prices.
SHFE copper prices fluctuated at current levels, but spot copper supply remained ample. Shanghai spot copper discounts were largely between RMB 120-260/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,120-57,180/mt, and RMB 57,220-57,320/mt for high-quality copper. Some speculators entered markets in the morning, with high-quality copper favored. In this context, the price gap between standard and high-quality copper continued expanding. Downstream producers also bought at lows, so market transactions improved. In the afternoon, with SHFE copper hovering narrowly, spot copper discounts held flat with morning levels, but traded prices inched higher to RMB 57,200-57,350/mt. SHFE copper stocks increased by 11,010 mt to 207,709 mt in the week ending February 22 due to the Chinese New Year holiday factor and since imported copper arrived at ports.