SHANGHAI, Mar. 20 (SMM) – SHFE 1307 copper contract prices opened lower at RMB 54,550/mt on March 20 as the low-end LME copper prices slipped overnight due to sell-off. After the opening, LME copper prices rebounded, causing a large number of shorts on the SHFE copper market to close positions, sending the most active SHFE copper contracts up by nearly RMB 700/mt. The Shanghai Composite Index gained 2.66%. In the afternoon, SHFE copper for July delivery moved within RMB 55,200-55,400/mt, with the high-end price at RMB 55,470/mt. Finally, SHFE 1307 copper contract prices finished RMB 310/mt or 0.56% higher at RMB 55,350/mt. Positions were down 24,600 lots to 249,816 lots, while trading volumes were up 79,660 lots to 388,670 lots. Markets are eyeing the US Federal Reserve’s policy statement due tonight and it remains to be seen whether the most active SHFE copper contract will be able to find support at RMB 55,000/mt.
Spot copper premiums were RMB 80-250/mt in Shanghai on Wednesday. Traded prices for standard-quality copper were between RMB 55,350-55,600/mt, and RMB 55,450-55,700/mt for high-quality copper. Prices of the most active SHFE copper contracts rose after a low opening today. Speculators bought at low prices in the morning and hiked spot copper premiums after SHFE copper prices went up. High-quality copper prices were RMB 100/mt higher than standard-quality copper due to high demand. Later, spot premiums fell as downstream producers were cautious about buying. Few transactions were completed at mid-day. In the afternoon, SHFE copper prices still hovered at high levels, and middlemen showed little interest in entering market. Premiums for standard-quality copper were RMB 50-80, while those for high-quality copper were between RMB 100-130/mt. Supplies increased by inquiries were rare. The uncertain market outlook promoted most investors to book profits so as to avoid any risk overnight.