SHANGHAI, Jul. 17 (SMM) – SHFE 1311 copper contract started RMB 50/mt lower at RMB 49,900/mt on Tuesday. The most active contract sank to RMB 49,720/mt in the morning session, but then advanced above the daily moving average due to dip-buying. SHFE copper for November delivery rose further to an intraday high of RMB 50,280/mt at the tail of the session due to position liquidation before closing at RMB 50,250/mt, up RMB 300/mt or 0.6%. Trading volumes contracted 110,000 lots, but positions added 3,842 lots. SHFE 1311 copper contract has found support at RMB 49,700/mt, but resistance at the 30-day moving average remains strong.
Spot copper in Shanghai was offered at a premium of RMB 100-230/mt over SHFE 1308 copper contract prices on Tuesday. Traded prices for standard-quality copper were between RMB 50,420-50,620/mt, and RMB 50,500-50,780/mt for high-quality copper. Cargo holders hiked spot premium now that SHFE 1308 copper contracts have become the new current-month contract. Speculators were hunting for lower-priced high-quality copper early in the morning. Downstream producers shied away from higher prices after copper prices rose by almost RMB 300/mt in the second trading session. Speculators will continue to contribute most to trading since July is an off-season for copper consumption. Cargo holders were more reluctant to sell at low prices in the afternoon as SHFE copper further strengthened, and premiums for spot copper were between RMB 80-200/mt. Traded prices in spot markets rose to RMB 50,600-50,800/mt. Some speculators continued to purchase, but most downstream consumers only waited on the sidelines.