SHANGHAI, Mar. 1 (SMM) –With LME copper hovering near current levels overnight, the most active SHFE 1306 copper contract opened flat at RMB 57,600/mt Thursday. The contract fluctuated at highs after the opening, and tested a low at RMB 57,520/mt before the midday. However, as the Shanghai Composite Index surged by 2.3% in the afternoon, SHFE copper prices rose to an intraday high of RMB 58,850/mt. As short investors entered markets again, SHFE copper prices edged down before fluctuating near the daily moving average of RMB 57,700/mt. Narrowing daily gains, SHFE 1306 copper contract closed at RMB 57,680/mt, still up RMB 80/mt or 0.14%. Trading volumes and positions for the most active copper contract increased by 19,172 lots and 8,520 lots, respectively. SHFE copper prices have stood above the 5-day moving average and are likely to rebound for the near future, with the low-end price rising gradually.
SHFE copper prices held flat, but spot copper supply remained sufficient at the month’s end, causing spot copper discounts to expand. Shanghai spot copper discounts were largely between RMB 150-270/mt in the morning business. Traded prices for standard-quality copper were between RMB 57,050-57,150/mt, and RMB 57,100-57,250/mt for high-quality copper. Cargo-holders expressed slight reluctance in moving goods at lows near the midday when copper prices dropped rapidly, and led market supply to decrease. As a result, copper discounts shrank marginally. Some speculators entered markets, but downstream buying was limited due to tight cash flows. Hence, overall market transactions were limited in the morning. In the afternoon session, since SHFE copper prices saw no major changes, spot copper offers and traded prices both held virtually flat with morning levels. Nonetheless, market activity remained muted at the month’s end.