SHANGHAI, Jun. 20 (SMM) – SHFE 1310 copper contract started RMB 330/mt lower at RMB 50,910/mt on Wednesday as LME copper fell below USD 7,000/mt overnight. Sell-off trigged by falling LME copper and the slump in the Shanghai Composite Index dragged the most active SHFE copper contract down to RMB 50,580/mt. SHFE copper for October delivery recovered some of its earlier losses at the tail of the session as LME copper rallied, and finally closed RMB 290/mt or 0.57% lower at RMB 50,950/mt, with trading volumes down 101,000 lots and positions up 3,788 lots. Technical indicator remains bearish, and the struggle between longs and shorts will leaving the most active SHFE copper contract at RMB 51,000/mt.
Spot copper in Shanghai was offered at a premium of RMB 120-250/mt over SHFE 1307 copper contract prices on Wednesday. Traded prices for standard-quality copper were between RMB 51,400-51,450/mt, and RMB 51,500-51,600/mt for high-quality copper. SHFE 1310 copper contract extended losses. Supply of imported copper was ample due to rising SHFE/LME copper price ratio. As a result, holders of domestic copper were forced to cut premium. Middlemen largely held to the sidelines, while downstream producers purchased as needed. Premiums for spot copper, especially standard-quality copper, slipped in the afternoon to RMB 80-220/mt, with traded prices at RMB 51,300-51,650/mt. Some traders went arbitrage trading.