SHANGHAI, Jul. 26 (SMM) – SHFE 1311 copper contract opened RMB 80/mt lower at RMB 50,320/mt on Thursday as LME copper pulled back after hitting high overnight. However, the most active contract rose after its opening as longs entered the market and as LME copper regained support at USD 7,000/mt due to falling US dollar index. SHFE copper for November delivery hit an intraday high of USD 50,560/mt at the tail of the session before closing at RMB 50,490/mt, up RMB 90/mt or 0.18%. Trading volumes decreased by 161,000 lots, but positions increased by 12,278 lots. Technical resistance remains strong, though.
Spot copper in Shanghai was quoted at a premium of RMB 100-350/mt over SHFE 1308 copper contract prices on Thursday. Traded prices for standard-quality copper were between RMB 50,900-51,050/mt, and RMB 51,100-51,300/mt for high-quality copper. Cargo holders became more willing to sell against tightening liquidity on the last day of the delivery of copper signed on a long-term basis, sending premium down. Prices of imported standard-quality copper, in particular, fell most sharply. Middlemen and downstream producers stayed out of the market. In the afternoon, more cargo holders sold goods actively, and the large amount of copper imports arriving at ports caused finance-driven traders to enter the market and sell goods. Premiums for spot copper thus fell to RMB 60-280/mt, and traded prices were RMB 50,900-51,250/mt.