SHANGHAI, Mar. 28 (SMM) – SHFE 1307 copper contract opened RMB 180/mt higher at RMB 55,900/mt on Wednesday, despite pullback in LME copper overnight. After the opening, the most active SHFE copper contract climbed to RMB 55,920/mt before tumbling all the way down below the daily moving average. In the afternoon, LME copper slid and shorts flooded in, driving the most-traded SHFE copper contract to an intraday low of RMB 55,430/mt. Finally, SHFE copper for July delivery ended the day down RMB 160/mt or 0.29% at RMB 55,560/mt. Trading volumes increased 25,170 lots, while positions were also up 9,050 lots. SHFE copper is under selling pressure at RMB 56,000/mt in the near term.

Spot copper premiums were RMB 20-100/mt in Shanghai on Wednesday. Traded prices for standard-quality copper were between RMB 55,750-55,800/mt, and RMB 55,780-55,880/mt for high-quality copper. Prices for the most active SHFE copper contracts drifted lower after a high opening, stimulating cargo holders to sell at highs, pushing spot premiums up. Many varieties of high-quality copper was available in the market, whereas standard-quality copper and low-end wet-processed copper were in tight supply, narrowing price spread between these two categories. Downstream producers and middlemen stayed out of the market out of growing bearishness over future prices, keeping transactions muted. In the afternoon, SHFE copper continued to fall, and cargo holders became unwilling to move goods, leaving few quotations. Downstream purchases remained limited despite falling prices. Thus, premiums showed no significant increase, with Guixi quoted at premiums of RMB 90-100/mt and traded prices at RMB 55,650-55,750/mt.