SHANGHAI, Jun. 24 (SMM) – Falling LME copper caused SHFE 1310 copper contract to open RMB 960/mt lower at RMB 48,960/mt on Friday. After its opening, the most active SHFE copper contract plunged to RMB 48,390/mt on sell-off, but then rebounded to near RMB 49,500/mt on long buying, with resistance at RMB 49,700/mt. Finally, SHFE copper for October delivery ended the day down RMB 270/mt or 0.54% at RMB 49,650/mt, with trading volumes up 250,000 lots and positions up 6,852 lots. The most active SHFE copper contract is still under downward track after hitting the lowest in 20 months.
Spot copper in Shanghai was offered at a premium of RMB 100-300/mt over SHFE 1307 copper contract prices on Friday. Traded prices for standard-quality copper were between RMB 49,600-50,250/mt, and RMB 49,680-50,300/mt for high-quality copper. SHFE 1310 copper contract trimmed more than 2% in the morning, causing traders to actively move goods. Middlemen went bargain hunting, but sold goods after copper prices rebounded. This caused spot copper supply to surge, pushing premium down. High-quality copper was offered RMB 150-180/mt higher than SHFE 1307 copper contract, while standard-quality copper was quoted at a premium of RMB 0-120/mt over SHFE current-month copper contract. There was a price gap of close to RMB 1,000/mt for the same variety of copper. Later, market turned quiet. Premiums for spot copper fell to RMB 20-120/mt, with traded prices at RMB 50,050-50,300/mt. SHFE copper inventories increased 5,799 mt to 189,209 mt last week as the rising SHFE/LME copper price ratio pushed up copper imports.