SHANGHAI, Apr. 26 (SMM) – SHFE 1308 copper contract started Thursday RMB 830/mt higher at RMB 50,780/mt. After its opening, a falling US dollar index pushed LME copper up to USD 7,100/mt. In response, the most active SHFE copper contract broke through resistance at RMB 51,000/mt to RMB 51,400/mt. Finally, SHFE copper for August delivery gained RMB 1,330/mt or 2.66% to close at RMB 51,280/mt. Trading volumes and positions decreased 201,000 lots and 44,946 lots, respectively. Most investors closed positions before the Chinese May Day holiday to avoid risks, depriving SHFE copper of upward momentum.
Spot copper in Shanghai was quoted at a premium of RMB 150-250/mt over SHFE 1305 copper contract on Thursday. Traded prices for standard-quality copper were between RMB 51,400-51,850/mt, and RMB 51,450-52,000/mt for high-quality copper. SHFE 1308 copper contract rose after a high opening, leaving little room for arbitrage. Spot copper supply was stable, while downstream producers began to build up stocks for the upcoming Chinese May Day holiday. Cargo holders had more negotiation power over pricing. Spot copper supply continued to reduce in the afternoon. Some traders held prices high, and premiums were between RMB 170-270/mt. Traded prices remained little changed from the morning session but transactions were few.