SHANGHAI, Jun. 3 (SMM) – SHFE 1309 copper contract started Friday RMB 570/mt higher at RMB 52,790/mt, helped by rising LME copper last night. After its opening, the most active SHFE copper contract jumped to RMB 53,050/mt, but was later dragged down by a wave of sell-off. In the afternoon, the Shanghai Composite Index plunged, weighing SHFE copper for September delivery down to RMB 52,520/mt. Finally, SHFE 1309 copper contract gained RMB 500/mt or 0.96% to end at RMB 52,720/mt, with trading volumes and positions down 280,000 lots and 11,316 lots, respectively.
Spot copper in Shanghai was offered at a premium of RMB 150-300/mt over SHFE 1306 copper contract prices on Friday. Traded prices for standard-quality copper were between RMB 53,500-53,600/mt, and RMB 53,570-53,750/mt for high-quality copper. SHFE 1309 copper contract prices failed to rebound. Spot copper supply was ample, and premium held steady. Some middlemen went bargain hunting, while downstream producers watched from the sidelines. Premiums were weighed down in the afternoon due to ample supply and fell to RMB 100-260/mt. Traded prices were RMB 53,300-53,550/mt, with transactions sparse. SHFE copper inventories increased 2,693 mt to 179,317 mt last week, and inventories are expected to rise further given the increasing imports and soft consumption.