SHANGHAI, Jun. 26 (SMM) – SHFE 1310 copper contract opened RMB 520/mt lower at RMB 48,100/mt on Tuesday. China’s A-shares tumbled more than 5% for two consecutive days to 1,849 points, keeping copper prices in check. On the other hand, some short sellers took profits, preventing copper prices from falling. The most active SHFE copper contract, however, sank to RMB 47,560/mt in the afternoon session as LME copper dropped to USD 6,000/mt. Later, SHFE copper for October delivery rose to RMB 48,950/mt due to position liquidation, and finally closed at RMB 48,580/mt, down RMB 40/mt or 0.08%, with trading volumes up 193,000 lots and positions down 45,104 lots. SHFE copper is still under downward track.
Spot copper in Shanghai was offered at a premium of RMB 30-150/mt over SHFE 1307 copper contract prices on Tuesday. Traded prices for standard-quality copper were between RMB 48,650-48,880/mt, and RMB 48,700-49,050/mt for high-quality copper. SHFE 1310 copper contract extended losses. The SHFE/LME copper price ratio fell sharply, resulting in less imported copper available in the market. Spot premium, however, actually fell as cargo holders were anxious to sell for cash at the month’s end. Downstream producers bought to need at low prices. Market panic will remain. Premiums for spot copper narrowed in the afternoon trading session to RMB 20-120/mt, with traded prices at RMB 48,450-49,150/mt.