SHANGHAI, Jul. 5 (SMM) – SHFE 1310 copper contract opened RMB 190/mt higher at RMB 50,430/mt on Thursday. The most active SHFE copper contract sank to RMB 50,080/mt after climbing to RMB 50,580/mt as longs took profits. SHFE copper for October delivery failed to gain traction from the rally in China’s A-shares, and eventually closed at RMB 50,130/mt, down RMB 110/mt or 0.22%. Trading volumes and positions of SHFE 1310 copper contracts shrank 136,000 lots and 29,676 lots, respectively. Caution is dominating the market.
Spot copper in Shanghai was quoted at a discount of RMB 0-40/mt and premium of RMB 0-60/mt over SHFE 1307 copper contract prices on Thursday. Traded prices for standard-quality copper were between RMB 50,650-50,750/mt, and RMB 50,700-50,850/mt for high-quality copper. SHFE copper moved lower after a high opening. Cargo holders rushed to sell, causing premium to fall. Premium of high-quality copper dropped to RMB 0-30/mt near mid-day, and standard-quality copper was offered at a discount over SHFE current-month copper contract. Downstream producers bought as needed, and middlemen exhibited low buying interest. SHFE copper continued to retreat in the afternoon, driving may to sell off and pressuring spot markets, with premiums for spot copper holding steady and traded prices edging lower to RMB 50,600-50,800/mt.