SHANGHAI, Apr. 19 (SMM) – LME copper retreated from USD 7,000/mt, causing all SHFE copper contracts to start Thursday down by their daily limits. SHFE 1308 copper contract opened at RMB 50,530/mt. After its opening, the most active SHFE copper contract touched a high of RMB 50,590/mt, but later dropped to its daily limit again. Finally, SHFE copper for August delivery ended the day down RMB 2,110/mt or 4% at RMB 50,530/mt. Trading volumes decreased 412,000 lots, and positions were also down 37,694 lots. With panic sentiment spreading and with LME copper showing no signs of stopping falling, the most active SHFE copper contract should test support at RMB 50,000/mt in the near term.
Spot copper in Shanghai was quoted at a discount of RMB 0-200/mt and premium of RMB 0-20/mt over SHFE 1305 copper contract on Thursday. Traded prices for standard-quality copper were between RMB 50,630-50,680/mt, and RMB 50,580-50,850/mt for high-quality copper. SHFE copper plummeted, triggering panic sentiment. Some middlemen went bargain hunting in the morning, but market turned quiet during the second trading session as downstream producers refused to enter the market out of strong bearishness. In the afternoon, the continued decline in LME copper caused cargo holders to lower prices, with discount expanding to RMB 100-220/mt, and traded prices were RMB 50,600-50,730/mt.