SHANGHAI, Mar. 22 (SMM) – With LME copper rising overnight, SHFE 1307 copper contract prices gapped RMB 350/mt higher at RMB 55,450/mt on March 21. In the morning session, HSBC’s China preliminary manufacturing PMI for March beat forecasts, pushing LME and SHFE copper up. Combined with the redound in the Shanghai Composite Index, the most active SHFE copper contract prices broke through RMB 56,000/mt, and later jumped even higher to RMB 56,630/mt on massive short-covering and dip-buying. Finally, SHFE 1307 copper contract prices finished RMB 680/mt or 1.23% higher at RMB 55,780/mt. Trading volumes increased 58,712 lots, while positions decreased 268,880 lots. SHFE copper for July delivery should rise further in the near term.
Spot copper discounts were RMB 0-40/mt and premiums RMB 0-80/mt in Shanghai on Thursday. Traded prices for standard-quality copper were between RMB 56,000-56,400/mt, and RMB 56,050-56,500/mt for high-quality copper. HSBC’s China March manufacturing PMI beat forecasts, helping SHFE 1307 copper contract prices gain by RMB 1,000/mt after a high opening. A small number of speculators bought in at lows in the morning and then quickly sold at higher prices. Spot copper supplies were ample and premiums dropped all the way down. Standard-quality copper was sold at discounts. Market quotations varied greatly. Middlemen bought spot copper while selling SHFE copper. Few transactions were completed at above RMB 56,000/mt and middlemen were the major contributors to today’s transactions. In the afternoon, SHFE copper prices fell, driving spot discounts over the most active SHFE copper contract price to narrow. Quotations for high-quality remained little changed from the morning trading session.