SHANGHAI, Mar. 29 (SMM) –SHFE 1307 copper contract started the day RMB 180/mt higher at RMB 55,820/mt on Thursday, thanks to a rebound in LME copper overnight. The Shanghai Composite Index lost more than 3% and LME copper retreated from USD 7,600/mt in the afternoon, dragging the most active SHFE copper contract to a low of RMB 55,200/mt. SHFE copper for July delivery stopped falling after shorts closed positions, and finally ended the day down RMB 340/mt or 0.61% at RMB 55,300/mt. Trading volumes and positions of SHFE 1307 copper contracts increased 66,686 lots and 3,404 lots, respectively. Trading volumes and positions of SHFE 1308 copper contracts were also up 37,584 lots and 10,836 lots, respectively. SHFE copper is expected to sink to RMB 55,000/mt at the bottom.
Spot copper discounts were RMB 0-30/mt and premiums RMB 0-80/mt in Shanghai on Thursday. Traded prices for standard-quality copper were between RMB 55,630-55,700/mt, and RMB 55,680-55,850/mt for high-quality copper. A plunging Shanghai Composite Index drove prices for the most active SHFE copper contracts down after a high opening. Cargo holders were aggressively selling for cash. Imported copper flooded in, pushing spot copper premiums all the way down. High-quality copper was quoted at a slight premium over SHFE 1304 copper contract near mid-day, while standard-quality copper was offered at discounts. Quotations for wet-processed copper were almost flat with standard-quality copper due to extremely tight supply. A limited number of middlemen entered the market in the morning. Downstream producers were little interested in buying as liquidity crunch bit in, leaving transactions muted. It is widely believed among market players that spot copper premiums will hardly be seen next week. Cargo holders’ opinions varied with SHFE copper prices slipping noticeably in the afternoon, but most of them refused to offer quotes and sell goods. Spot copper was quoted from discount of RMB 50/mt to premiums of RMB 30/mt, and traded prices were down to RMB 55,350-55,550/mt, with transactions quieter.