SHANGHAI, Apr. 15 (SMM) – SHFE 1308 copper contract opened RMB 100/mt higher at RMB 55,150/mt on Friday as LME copper regained losses overnight. After its opening, the most active SHFE copper contract rose along with LME copper as the US dollar index fell back. However, August copper on the SHFE pulled back after reaching RMB 55,250/mt due to falling Shanghai Composite Index. In the afternoon, the most-traded SHFE copper contract slid to RMB 54,940/mt as shorts entered the market, but did bounce back at the tail of trading. Finally, SHFE copper for August delivery closed at RMB 55,150/mt, a gain of RMB 100/mt or 0.18%. Trading volumes and positions increased 12,126 lots and 13,168 lots, respectively. The struggle between longs and shorts will leave SHFE copper stagnant at RMB 55,000/mt.
Spot copper in Shanghai was quoted at a discount of RMB 0-70/mt and premium of RMB 0-50/mt over SHFE 1304 copper contract prices on Friday. Traded prices for standard-quality copper were between RMB 55,330-55,370/mt, and RMB 55,410-55,470/mt for high-quality copper. SHFE 1308 copper contract prices maintained winning-streak, and there was a price gap of over RMB 100/mt among SHFE copper contracts. Cargo holders were eager to sell before upcoming delivery of SHFE 1304 copper contracts. Growing spot copper supply pushed copper premium down. Some middlemen went bargain-hunting. High-quality copper was favored, widening its price spread with standard-quality copper. Downstream producers will not enter the market until SHFE 1305 copper contracts become the new current-month contract, leaving trading light. Cargo holders sold goods actively in the afternoon, with spot copper mainly quoted at discounts of RMB 0-100/mt, and traded prices were between RMB 55,250-55,400/mt. SHFE copper inventories fell 13,653 lots to 228,290 lots. Consumption improved slightly as some buyers purchased at low prices.