SMM Copper Market Daily Review (2013-6-6)

SHANGHAI, Jun. 7 (SMM) – SHFE 1310 copper contract started Thursday RMB 110/mt lower at RMB 53,200/mt as LME copper pulled back after hitting high last night. After its opening, the most active SHFE copper contract stabilized at the daily moving average, but failed to touch the 60-day moving average. In the afternoon,  SHFE copper for October delivery was weighted down by plummeting Shanghai Composite Index to RMB 52,710/mt, and finally ended the day at RMB 52,900/mt, down RMB 410/mt or 0.77%. Trading volumes and positions were up 181,000 lots and 31,244 lots, respectively. Resistance remains strong at the 60-day moving average and copper prices are facing selling pressure at highs.

 

Spot copper in Shanghai was offered at a discount of RMB 0-70 and premium of RMB 0-120/mt over SHFE 1306 copper contract prices on Thursday. Traded prices for standard-quality copper were between RMB 53,750-53,850/mt, and RMB 53,800-54,030/mt for high-quality copper. SHFE 1309 copper contract prices were range-bound. Holders of imported copper rushed to sell for cash by lowering premium. Standard-quality copper was sold at discount. Prices of imported high-quality copper were flat with or slightly higher than SHFE 1306 copper contract prices, but RMB 100/mt lower than domestic high-quality copper. Prices of Guixi brand copper remained high, leaving little room for arbitrage. Downstream producers purchased based on orders at RMB 54,000/mt, with no massive pre-holiday restocking reported. In the afternoon, premiums for spot copper remained little changed at RMB 50-100/mt given ample supplies, and traded prices fell to RMB 53,450-53,850/mt.