SHANGHAI, Feb. 28 (SMM) –As LME copper rose from lows overnight, the most active SHFE 1306 copper contract opened RMB 220/mt up at RMB 57,510/mt Wednesday. The contract continued increasing following the opening, but hovered narrowly around the daily moving average after suffering resistance at RMB 57,740/mt, with a low at RMB 57,420/mt. Narrowing daily gains, SHFE 1306 copper contract closed at RMB 57,490/mt, an increase of RMB 180/mt or 0.31%. Trading volumes for the most active copper contract decreased 27,722 lots, but positions increased 10,380 lots. With severe struggle between long and short investors, SHFE copper prices were restricted at the 5-day moving average, and are expected to fluctuate at current levels for the near future.
SHFE copper prices lacked rebounding momentum, but spot copper cargo-holders insisted on moving goods, keeping market supply sufficient. Large copper discounts continued as a result, largely between RMB 140-260/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,020-57,100/mt, and RMB 57,100-57,200/mt for high-quality copper. Most speculators took a wait-and-see posture, awaiting clear price direction, while some downstream producers chose to enter markets at lows. Hence, market transactions increased marginally, but overall market supply still exceeded demand. In the afternoon, with SHFE copper holding flat, both spot copper offers and traded prices remained basically unchanged from morning levels.