SHANGHAI, Jun. 6 (SMM) – Bolstered by soaring LME copper last night, SHFE 1309 copper contract started Wednesday RMB 290/mt higher at RMB 53,350/mt. After its opening, the intense struggle between longs and shorts kept the most active SHFE copper contract hovering near the daily moving average, with resistance at the 60-day moving average and vulnerable at RMB 53,250/mt. At the tail of the session, SHFE copper for September delivery leaped to an intraday high of RMB 53,650/mt thanks to rising LME copper, and finally finished at RMB 53,640/mt, up RMB 580/mt or 1.09%. SHFE 1310 copper contract ended the day RMB 570/mt or 1.08% higher at RMB 53,520/mt, with its high-end and low-end prices at RMB 53,550/mt and RMB 53,130/mt, respectively. Trading volumes and positions of SHFE 1310 copper contracts were up 76,576 lots and 12,002 lots, respectively. Total trading volumes and positions increased 79,490 lots and 1,196 lots, respectively. SHFE 1310 copper contracts became the most active one today. Although resistance remains strong at the 60-day moving average, support level has advanced to RMB 52,800/mt.
Spot copper in Shanghai was offered at a premium of RMB 0-180/mt over SHFE 1306 copper contract prices on Wednesday. Traded prices for standard-quality copper were between RMB 53,800-53,900/mt, and RMB 53,900-54,060/mt for high-quality copper. SHFE 1309 copper contract prices failed to rebound, prompting cargo holders to sell at highs for cash. Premium slid all the way down due to ample supply. Prices of high-quality copper were firm, though, especially Guixi brand. Offers of imported standard-quality copper were flat with SHFE 1306 copper contract prices towards mid-day, while hydrometallurgical copper was sold at discount. Middlemen tried to push for lower prices, while downstream producers refrained from buying at RMB 54,000/mt. Premiums for spot copper continued to fall in the afternoon to RMB 20-150/mt, with traded prices up slightly to RMB 53,800-54,100/mt. No transaction was made in the afternoon.