SHANGHAI, Mar. 27 (SMM) – SHFE 1307 copper contract started RMB 380/mt lower at RMB 55,700/mt Tuesday as LME copper fell back overnight. The most active SHFE copper contract then rose, but failed to break RMB 55,950/mt. Later, LME copper slipped to USD 7,600/mt and the Shanghai Composite Index declined by over 1.5% to below 2,300 points, sending the most-traded SHFE copper contract below the daily moving average, with weak support at RMB 55,510/mt. Finally, SHFE copper for July delivery ended the day down RMB 320/mt or 0.57% at RMB 55,760/mt. Trading volumes decreased 41,140 lots, while positions increased 2,488 lots. SHFE copper should remain weak in the near term.
Spot copper premiums were RMB 30-150/mt in Shanghai on Tuesday. Traded prices for standard-quality copper were between RMB 55,730-55,800/mt, and RMB 55,780-56,000/mt for high-quality copper. Prices for the most active SHFE copper contracts trended down after a low opening. Cargo holders were eager to sell for cash against tight cash flows at the quarter’s end. Supplies of spot copper were ample and premiums were limited. Middlemen refrained from buying out of growing bearishness over future prices, while downstream producers took a wait-and-see stance, leaving transactions muted. In the afternoon, SHFE copper prices remained stable, while quotes and traded prices in spot copper markets also showed little change.