SHANGHAI, Apr. 17 (SMM) – LME copper extended losses last night, causing SHFE 1308 copper contract to open RMB 1,220/mt lower at RMB 52,310/mt on Tuesday. After its opening, the struggle between longs and shorts left the most active copper contract hovering near the daily moving average, with support at RMB 51,920/mt. During the second trading session, SHFE copper tracked LME copper up as the US dollar index fell. The Shanghai Composite Index reversed declines, pushing August copper on the SHFE up further to RMB 53,060/mt at the tail of trading. Finally, SHFE copper for August delivery closed at RMB 52,900/mt, a decrease of RMB 630/mt. Trading volumes and positions of SHFE 1308 copper contracts decreased 9,924 lots and 428 lots, respectively, while trading volumes and positions of SHFE 1309 copper contracts increased 5,668 lots and 16,952 lots, respectively. Judging from today’s Shanghai Composite Index, investors attention has shifted to property sector. SHFE copper may be able to recover earlier losses if LME copper stops falling.
Spot copper was quoted between RMB 52,750-53,300/mt on Tuesday, with premiums between RMB 200-250/mt. Copper prices rose RMB 400/mt during the second trading session, depressing buying interest. Imported copper increased, and came in many varieties. As a result, premiums of standard-quality copper were lowered, and premiums of high-quality copper also narrowed to RMB 150-250/mt, with traded prices at RMB 52,850-53,250/mt. Downstream producers were divided on their willingness to buy. Some watched from the sidelines out of bearishness, while others went bargain-hunting. Overall trading improved, but bearishness continued to dominate the market. Prices varied largely in the afternoon as some cargo holders stayed on the sidelines which left fewer spot copper supplies. Premiums were quoted at RMB 150-280/mt, and traded prices were between RMB 53,000-53,300/mt.