SHANGHAI, Apr. 12 (SMM) – SHFE 1308 copper contract opened RMB 350/mt lower at RMB 54,900/mt on Thursday, dragged down by weak LME copper prices overnight. After its opening, the most active copper contract jumped above RMB 55,000/mt on dip-buying, but failed in its attempts to advance further after climbing to near the 20-day moving average owing to strong technical resistance. In the afternoon, the Shanghai Composite Index declined, sending SHFE copper for August delivery below RMB 55,000/mt. Finally, August copper on the SHFE closed down RMB 360/mt or 0.65% at RMB 54,890/mt, with its high-end and low-end price at RMB 55,310/mt and RMB 54,870/mt, respectively. Trading volumes shrank 19,840 lots, while positions increased 8,226 lots. Great volatility in SHFE copper prices is expected in the near term.
 
Spot copper in Shanghai was quoted at a discount of RMB 0-20/mt and premium of RMB 0-100/mt over SHFE 1304 copper contract prices on Thursday. Traded prices for standard-quality copper were between RMB 55,300-55,420/mt, and RMB 55,360-55,500/mt for high-quality copper. SHFE 1308 copper contract prices edged down, leaving a price gap of roughly RMB 100/mt among SHFE copper contracts. Cargo holders were eager to sell for cash by lowering offers. Standard-quality copper supply increased, widening its price gap with high-quality copper. Spot copper discounts were reported near mid-day, but premium did not narrow to what middlemen had desired, so middlemen largely held to the sidelines. Downstream producers intended not to enter the market until SHFE 1305 copper contracts become the new current-month contract, leaving trading stagnant. In the afternoon, spot copper was quoted at discount of RMB 70/mt to premiums of RMB 70/mt, and traded prices fell to RMB 55,200-55,400/mt. Transactions remained quiet.