SHANGHAI, Jun. 21 (SMM) – SHFE 1310 copper contract started RMB 560/mt lower at RMB 50,210/mt on Thursday as LME copper fell below USD 6,900/mt. HSBC’s flash China manufacturing PMI for June fell far short of forecasts, sending A-shares down 2.8% to below 2,100 points. Shorts dominated the market, weighing the most active SHFE copper contract down below RMB 49,620/mt in the afternoon session. Finally, SHFE copper for October delivery ended the day down RMB 1,050/mt or 2.07% at RMB 49,720/mt, with trading volumes up 47,466 lots and positions up 37,374 lots. The most active SHFE copper contract may drop further to RMB 49,000/mt.
Spot copper in Shanghai was offered at a premium of RMB 120-250/mt over SHFE 1307 copper contract prices on Thursday. Traded prices for standard-quality copper were between RMB 50,650-50,730/mt, and RMB 50,730-50,950/mt for high-quality copper. SHFE 1310 copper contract retreated from RMB 50,000/mt, causing markets to panic. Cargo holders rushed to sell as a result, but downstream producers purchased to orders out of growing pessimism, leaving supply in excess of demand. Spot copper supply remained ample in the afternoon, but downstream increased purchases, especially for standard-quality copper, premiums remained between RMB 100-250/mt, with traded prices at RMB 50,400-50,700/mt.
