SHANGHAI, Jul. 11 (SMM) – SHFE 1311 copper contract started RMB 320/mt higher at RMB 48,680/mt on Wednesday. The most active SHFE copper contract tumbled to RMB 48,000/mt as China’s falling foreign trade triggered aggressive selloff. In the afternoon, China’s A-shares bounced back to 2,000 points, pushing SHFE copper for November delivery above the daily moving average. SHFE 1311 copper contract rose further at the tail of the session as shorts scaled back positions before finishing at RMB 48,630/mt, down RMB 370/mt or 0.76%. Trading volumes added 179,000 lots and positions were up 29,634 lots. SHFE copper will meet great resistance as bearish sentiment dominates.
Spot copper in Shanghai was quoted at a premium of RMB 40-220/mt over SHFE 1307 copper contract prices on Wednesday. Traded prices for standard-quality copper were between RMB 49,120-49,400/mt, and RMB 49,220-49,550/mt for high-quality copper. SHFE copper moved lower after a low opening. Spot copper suppliers refrained from selling at lows. Prices of high-quality copper rose due to falling supply. Middlemen still preferred high-quality copper. Downstream producers became more interested in buying when prices fell to 49,000/mt, but were still cautious about future prices. In the afternoon, premiums for spot copper narrowed to RMB 20-180/mt, but traded prices held firm at RMB 49,150-49,550/mt.