SHANGHAI, Apr. 7 (SMM) –With LME copper hovering at high levels last night, SHFE 1307 copper contract opened RMB 200/mt higher at RMB 54,470/mt on Wednesday. After its opening, SHFE copper contracts followed LME copper up to RMB 54,800/mt as many shorts closed positions. At the tail of trading, the Shanghai Composite Index and LME copper both fell, causing SHFE copper to surrender all of the gains recorded during the day and to slide to RMB 53,930/mt. Finally, SHFE 1307 copper contract finished at RMB 54,060/mt, down RMB 210/mt or 0.39%. SHFE 1308 copper contract settled down RMB 280/mt or 0.52% at RMB 53,990/mt, with its highest and lowest at RMB 54,680/mt and 53,810/mt, respectively. Trading volumes of SHFE 1308 copper contracts increased 1,670 lots, with positions also up 21,284 lots. SHFE 1308 copper contracts became the most active one today. SHFE copper should repeatedly test support at RMB 54,000/mt following the three-day public holiday in China.
Spot copper premiums were RMB 150-230/mt in Shanghai on Wednesday. Traded prices for standard-quality copper were between RMB 54,680-54,900/mt, and RMB 54,730-54,980/mt for high-quality copper. The most active SHFE copper contract rose after a high opening, easing market bearishness. Cargo holders refrained from selling at lows out of growing optimism over future prices. Spot copper supplies decreased, with offers little changed from yesterday. Some middlemen entered the market as the price gap between standard-quality copper and high-quality copper narrowed. Downstream producers rebuilt stocks in small amounts, improving overall trading. Premiums for spot copper were quoted higher at RMB 170-250/mt, but traded prices fell to RMB 54,500-54,900/mt in the afternoon.