SHANGHAI, Apr. 11 (SMM) –SHFE 1308 copper contract opened RMB 470/mt higher at RMB 55,390/mt on Wednesday as LME copper extended gains overnight. After its opening, the most active copper contract advanced to RMB 55,460/mt, but failed to climb to the 20-day moving average due to a lack of buying. In the afternoon, SHFE copper for August delivery tracked LME copper down to RMB 55,050/mt, and finally settled at RMB 55,140/mt, an increase of RMB 220/mt or 0.4%. Trading volumes shrank 17,150 lots, while positions increased 8,324 lots. Selling pressure at the 20-day moving average increased, but technical indicator was positive, so support at RMB 55,000/mt still needs to be tested.
Spot copper in Shanghai was quoted at a premium of RMB 50-150/mt over SHFE 1304 copper contract prices on Wednesday. Traded prices for standard-quality copper were between RMB 55,520-55,620/mt, and RMB 55,550-55,700/mt for high-quality copper. SHFE copper prices were mired. Cargo holders were eager to sell for cash, leading to increased spot copper supply and pushing premium all the way down. Premium of high-quality copper was less than RMB 100/mt near mid-day. Downstream buying interest dwindled at above RMB 55,000/mt. Middlemen stayed out of the market as there was no opportunity for arbitrage after spot copper premium tumbled. Premiums for spot copper were quoted higher at RMB 50-120/mt in the afternoon, but traded prices were down to RMB 55,400-55,520/mt.