SHANGHAI, Jun. 5 (SMM) – With LME copper little changed last night, SHFE 1309 copper contract started Tuesday RMB 10/mt lower at RMB 52,960/mt. After its opening, the most active SHFE copper contract hovered near the daily moving average, with its high-end price at RMB 53,250/mt. In the afternoon, SHFE copper for September delivery was weighted down by plunging Shanghai Composite Index to RMB 52,880/mt, and finally ended at RMB 53,090/mt, up RMB 120/mt or 0.23%. Trading volumes and positions were down 104,000 lots and 18,486 lots, respectively. SHFE 1310 copper contract may become the most active one soon. Trading activity in SHFE copper market diminished compared with a week ago. SHFE 1309 copper contract has found strong support at RMB 52,500/mt, and should encounter resistance at the 60-day moving average.
Spot copper in Shanghai was offered at a premium of RMB 60-220/mt over SHFE 1306 copper contract prices on Tuesday. Traded prices for standard-quality copper were between RMB 53,600-53,750/mt, and RMB 53,650-53,880/mt for high-quality copper. SHFE 1309 copper contract prices rallied mildly. Premium of spot copper continued to narrow. Holders of imported copper were actively selling for cash, widening price spread with domestic copper. There was little room for arbitrage for middlemen. Trading was muted near RMB 54,000/mt. Premium should continue to fall until oversupply eases markedly. In the afternoon, quotes in spot market varied largely, and cargo holders were eager to sell goods for cash flow. Premiums were mainly offered at RMB 60-150/mt, with traded prices remaining unchanged from the morning session.