SHANGHAI, Feb. 27 (SMM) –As LME copper dropped after initially rising overnight, SHFE 1306 copper contract, opened RMB 230/mt down at RMB 57,070/mt Tuesday. The contract followed LME copper to stop falling and rose above the opening price, with a high at RMB 57,530/mt. But with long investors conducting profit-taking, SHFE copper prices were sent down to levels above the daily moving average. At the tail of trading, as the Shanghai Composite Index dipped below 2,300, SHFE copper prices surrendered all daily gains amid short selling and touched an intraday low at RMB 57,040/mt. SHFE 1306 copper contract ended RMB 170/mt or 0.3% lower at RMB 57,130/mt, with trading volumes and positions up 43,530 lots and 21,844 lots, respectively. With more severe struggle between long and short investors, SHFE copper prices will likely continue to test support at RMB 57,000/mt for the immediate future.
SHFE copper prices marched higher after starting lower, but spot copper cargo-holders held divergent views. Some cargo-holders were eager to move goods for cash and slashed price quotes, but others held prices firm. However, overall spot copper supply remained sufficient. Shanghai spot copper discounts were RMB 80-220/mt in the morning business. Traded prices for standard-quality copper were between RMB 56,870-56,970/mt, and RMB 56,950-57,070/mt for high-quality copper. Copper discounts remained basically stable in the morning, but expanded all the way near the midday when SHFE copper prices increased. Market activity improved as downstream buying increased. In the afternoon, SHFE copper prices slid from earlier highs, but spot copper market transactions were limited as some downstream producers entered markets at lows. Spot copper discount quotes were RMB 100-240/mt in the afternoon, but traded prices completely declined below RMB 57,000/mt.