SHANGHAI, Mar. 11 (SMM) – With LME copper prices reversing declines overnight, the most active SHFE 1306 copper contract opened RMB 330/mt up at RMB 56,740/mt last Friday. The contract hovered narrowly around the daily moving average following the opening, with a fluctuating band of merely RMB 200/mt. SHFE copper prices suffered resistance at a high of RMB 56,870/mt, but were well supported at RMB 56,620/mt. SHFE 1306 copper contract finally gained RMB 330/mt or 0.59% to close at RMB 56,740/mt, with trading volumes and positions down 31,446 lots and 6,540 lots, respectively. SHFE copper prices recouped the 5-day moving average and won increasing support at a trough of RMB 56,500/mt.
SHFE copper prices rebounded, heightening market optimism over future markets. That, combined with the fact that some hedged copper was locked, helped spot copper cargo-holders quote firm prices. Copper premium quotes rose all the way in the face of limited copper supply, and copper offers all turned to premiums near the midday. Shanghai spot copper offers were largely quoted between discounts RMB 30/mt and premiums 70/mt in the morning business. Traded prices for standard-quality copper were between RMB 56,500-56,600/mt, and RMB 56,560-56,680/mt for high-quality copper. Some large traders chose to buy in large quantities and led copper supply to decrease sharply, and downstream producers also stepped up purchases owing to optimism towards copper prices in the coming week. Nevertheless, cargo-holders expressed reluctance in moving goods. In the afternoon, SHFE copper prices stabilized, but spot copper supply decreased further, helping mainstream copper premium quotes to rise to RMB 20-90/mt. Traded prices surged to RMB 56,600 -56,700/mt in the afternoon as cargo-holders became more eager to hold prices. SHFE copper stocks declined by 785 mt to 225,416 mt last Friday now that downstream producers increased purchases at lows.