SHANGHAI, Mar. 15 (SMM) – As LME copper prices dropped overnight, the most active SHFE 1306 copper contract opened RMB 190/mt down at RMB 56,730/mt Thursday. The contract fell all the way following the opening as selling pressures for forward SHFE copper contracts grew, but eased declines after testing a low at RMB 56,370/mt. SHFE copper prices then rallied to the daily moving average of RMB 56,600/mt, and hovered around this price level. In the afternoon, with the Shanghai Composite Index slipping from earlier highs, SHFE copper prices experienced more volatility, but pared some of losses at the tail of trading. SHFE 1306 copper contract closed RMB 150/mt or 0.26% lower at RMB 56,770/mt, with trading volumes and positions down 29,662 lots and 5,064 lots, respectively. The most active copper contract was expected to shift to SHFE 1307 copper contract on March 15. With solid technical support at the lows but selling pressures for forward contracts, SHFE copper prices will fluctuate near current levels for the foreseeable future.
SHFE copper prices trended down after opening lower, but spot copper cargo-holders insisted on firm prices ahead of delivery for SHFE 1303 copper contract. Shanghai spot copper premiums were quoted between RMB 0-100/mt in the morning business. Traded prices for standard-quality copper were between RMB 56,500-56,550/mt, and RMB 56,550-56,620/mt for high-quality copper. A small number of speculators chose to enter markets at lower price levels, but traders preferred to stand on the sidelines after copper prices rallied. Downstream producers continued purchasing to need, so overall market transactions remained limited in the morning. In the afternoon, as SHFE copper prices marched slightly down, copper premiums rose to RMB 20-120/mt, while traded prices were RMB 56,450-56,580/mt. Market activity was still muted in the afternoon.