SHANGHAI, Apr. 24 (SMM) – With LME copper being mired overnight, SHFE 1308 copper contract opened RMB 230/mt lower at RMB 49,500/mt on Tuesday. After its opening, worse-than-expected HSBC’s China PMI sent the Shanghai Composite Index plunging 2.5%, weighing down the most active SHFE copper contract. However, more investors bought SHFE forward-month copper contracts, helping SHFE copper for August delivery move within RMB 49,000-49,500/mt in the morning session, with its high-end price at RMB 50,730/mt. In the afternoon, panic selling and the retreat of LME copper from USD 6,800/mt drove SHFE copper for delivery in four months down to RMB 48,460/mt. Finally, the most active SHFE copper contract closed down RMB 650/mt or 1.31% at RMB 49,080/mt. Trading volumes and positions of SHFE 1308 copper contract increased 158,000 lots and 12,062 lots, respectively. Total trading volumes and positions were also up 306,000 lots and 34,426 lots.
Spot copper in Shanghai was quoted at a premium of RMB 130-250/mt over SHFE 1305 copper contract on Tuesday. Traded prices for standard-quality copper were between RMB 49,950-50,250/mt, and RMB 50,050-50,350/mt for high-quality copper. HSBC’s China PMI for April fell far short of expectations, causing SHFE 1308 copper contract to extend losses. The most active SHFE copper contract fell again towards mid-day, aggravating market pessimism. Spot copper premium narrowed and no massive dip-buying was reported even after copper prices retreated from RMB 50,000/mt. In the afternoon, cargo holders were eager to sell goods with SHFE falling further, leaving spot premiums at RMB 150-230/mt. Some traders conducted arbitrage, and traded prices were below RMB 50,000/mt. Downstream buyer rarely entered the market.