SHANGHAI, Mar. 20 (SMM) – With LME copper prices stopped falling at the tail of trading yesterday, SHFE 1307 copper contract prices opened RMB 110/mt higher at RMB 55,430/mt on March 19. After the opening, SHFE copper for July delivery fell back to near Monday’s settlement price. In the afternoon, shorts entered the market, sending the most active SHFE copper contract to a low of RMB 54,710/mt. The most-traded SHFE copper contract did recover some losses at the tail of trading thanks to a rebound in the Shanghai Composite Index, and finally finished at RMB 54,910/mt, down RMB 370/mt or 0.67%. Trading volumes of SHFE 1307 copper contracts decreased 125,000 lots, but positions increased 36,674 lots. Short selling eased some, but shorts continued to dominate the market, putting downward pressure on copper prices.
Spot copper premiums were RMB 50-180/mt in Shanghai on Tuesday. Traded prices for standard-quality copper were between RMB 55,480-55,520/mt, and RMB 55,550-55,600/mt for high-quality copper. SHFE copper prices stopped falling, allowing cargo holders to hold back goods at low prices. Spot copper supplies fell sharply as a result, especially high-quality copper. Downstream producers went bargain-hunting, while middlemen were hunting for high-quality copper. Both traded prices and volumes of high-quality copper went up. Trading was brisk at low prices. In the afternoon, SHFE copper prices fell quickly. High-quality copper was rarely seen in spot market with a few quotations made at spot premiums of RMB 180-220/mt against the most active SHFE copper contract price. Sellers holding high-quality copper were more reluctant to move goods at low prices, while standard-quality copper was not favored by buyers, and was quoted at premiums of RMB 60-100/mt over the most active SHFE copper contract price. Trading was quiet and traded prices slipped to RMB 55,200-55,400/mt.