SHANGHAI, Mar. 18 (SMM) – As LME copper prices drifted higher overnight, the most active SHFE 1306 copper contract opened RMB 320/mt up at RMB 56,900/mt Friday. The contract hovered around the daily moving average following the opening, with a fluctuating band of merely RMB 100/mt. However, as Chinese A-share market surged near the midday, SHFE copper prices broke resistance at RMB 57,000/mt and rose to an intraday high of RMB 57,280/mt, but then edged down to around the RMB 57,000/mt point. SHFE 1306 copper contract finally closed at RMB 57,120/mt, still up RMB 540/mt or 0.95%, with trading volumes and positions down 17,408 lots and 7,216 lots, respectively. The shift of the most active copper contract was still not finished. With low-end price increasing but pressure around the 20-day moving average growing, SHFE copper prices are likely to further fluctuate between the 10 and 20-day moving average over the short term.
Shanghai spot copper premiums were quoted between RMB 20-110/mt in the morning business. Traded prices for standard-quality copper were between RMB 56,750-56,900/mt, and RMB 56,800-57,050/mt for high-quality copper. SHFE copper prices marched higher after starting up, with the price gap between SHFE 1303 and 1304 copper contract expanding above RMB 100/mt. However, spot copper supply decreased sharply, forcing cargo-holders to hold prices firm during the last trading day for SHFE 1303 copper contract. Traders exhibited low buying interest due to high premiums, while downstream producers increased purchase volumes at lows but shifted to the sidelines following copper price surges.