SHANGHAI, Apr. 10 (SMM) – LME copper moved at high levels last night, helping SHFE 1308 copper contract open RMB 530/mt higher at RMB 54,850/mt on Tuesday. After its opening, the most active copper contract advanced, but was still capped under the daily moving average due to short selling and technical resistance. In the afternoon, mild economic data and strong rally in the Shanghai Composite Index sent copper prices up. SHFE copper for August delivery closed at an intraday high of RMB 55,090/mt, an increase of RMB 770/m or 1.42%. Trading volumes and positions of SHFE 1308 copper contracts increased 71,554 lots and 10,802 lots, respectively. Total trading volumes were also up 89,096 lots, but total positions shrank 7,864 lots. The struggle between longs and shorts left SHFE copper stagnant near RMB 55,000/mt, and the support level is to be tested.
Spot copper in Shanghai was quoted at a premium of RMB 150-250/mt over SHFE 1304 copper contract prices on Tuesday. Traded prices for standard-quality copper were between RMB 55,100-55,250/mt, and RMB 55,150-55,350/mt for high-quality copper. SHFE copper prices rebounded, leaving little room for arbitrage in spot copper markets. As such, spot copper supply diminished, with offers remaining firm. SHFE copper fell back near mid-day, driving cargo holders to lower offers. Middlemen generally watched from the sidelines out of caution toward future prices, and downstream producers similarly believe the rally in copper prices will not sustain, leaving transactions subdued at above RMB 55,000/mt. Premiums for spot copper were between RMB 130-210/mt in the afternoon, while traded prices held steady, with inquiries still sparse.