SHANGHAI, Jun. 27 (SMM) – SHFE 1310 copper contract opened RMB 1,030/mt lower at RMB 49,230/mt on Wednesday. After its opening, the most active SHFE copper contract moved lower due to short selling and since longs exited the market. In the afternoon, SHFE copper for October delivery fell further to RMB 47,960/mt as LME copper retreated from USD 6,700/mt. Finally, SHFE 1310 copper contract shed RMB 140/m or 0.29% to end at RMB 48,060/mt, with trading volumes down 185,000 lots and positions up 20,694 lots. Trading volumes of SHFE copper exceeded 1 million lots for three consecutive days, with turnover rate at above 230%, a sign of active trading activity. Support at RMB 48,000/mt remains to be tested.
Spot copper in Shanghai was offered at a discount of RMB 0-100/mt and premium of RMB 0-40/mt over SHFE 1307 copper contract prices on Wednesday. Traded prices for standard-quality copper were between RMB 48,820-49,350/mt, and RMB 48,900-49,500/mt for high-quality copper. SHFE 1310 copper contract opened almost RMB 1,000/mt higher. Car holders cut quotes against tepid demand. Quotations were lower than SHFE 1307 copper contract prices after the most active SHFE copper contract gave back all the gains made during the morning session, with high-quality copper offered at RMB 20/mt lower than SHFE current-month copper contract. Middlemen and downstream producers largely refrained from buying against tightening liquidity. SHFE copper prices fell further in the afternoon, and spot copper was still quoted at discount of RMB 0-120/mt. Traded prices were down to RMB 48,700-49,050/mt.