SHANGHAI, Jul. 12 (SMM) – SHFE 1311 copper contract started RMB 1,130/mt higher at RMB 49,510/mt on Thursday. The most active SHFE copper contract jumped to RMB 50,800/mt as shorts closed positions but then pulled back to RMB 50,000/mt. In the afternoon, SHFE copper for November delivery rose by the daily limit again as LME copper broke through USD 7,000/mt and as China’s A-shares leapt by 4%. Finally, SHFE 1311 copper contract closed at RMB 50,700/mt, up RMB 2,320/mt or 4.8%. Trading volumes added 38,438 lots, but positions were off 25,774 lots. The most active SHFE copper contract will challenge resistance at the 60-day moving average.
Spot copper in Shanghai was quoted at a discount of RMB 0-20/mt and premium of RMB 0-80/mt over SHFE 1307 copper contract prices on Thursday. Traded prices for standard-quality copper were between RMB 50,620-50,700/mt, and RMB 50,660-50,820/mt for high-quality copper. SHFE copper jumped almost 4%. Spot copper supply fell, allowing cargo holders to hold prices firm. Most holders of standard-quality copper refused to sell at discount in the morning. However, premium of high-quality copper fell to RMB 50-60/mt and imported standard-quality copper was sold at discount towards mid-day as the price gap between SHFE 1307 and 1308 copper contract expanded. Downstream producers refrained from buying once copper prices rose above RMB 50,000/mt. With SHFE copper extending increases in the afternoon, spot copper was quoted at discounts of RMB 0-100/mt, and traded prices grew to RMB 50,950-51,250/mt. Some traders started purchasing spot copper for arbitrage, but downstream buyers rarely purchased.