SHANGHAI, Jul. 29 (SMM) – SHFE 1311 copper contract opened RMB 180/mt higher at RMB 50,580/mt on Friday as LME copper rose overnight on a falling US dollar. The most active contract hovered around RMB 50,500/mt in the morning session, but tumbled to RMB 49,880/mt in the afternoon as LME copper plunged at 2 p.m. SHFE copper for November delivery ended the day down RMB 360/m or 0.71% at RMB 50,040/mt. Trading volumes and positions increased by 63,400 lots and 13,682 lots, respectively. SHFE 1311 copper contract will meet resistance at the 6-day moving average and find support at the 30-day moving average ahead of next week’s Fed meeting.
Spot copper in Shanghai was quoted at a premium of RMB 50-280/mt over SHFE 1308 copper contract prices on Friday. Traded prices for standard-quality copper were between RMB 50,880-51,000/mt, and RMB 51,000-51,200/mt for high-quality copper. SHFE 1311 copper contract moved lower after a high opening, leaving spot copper suppliers in a hurry to sell for cash. Ample supply pushed spot premium down. Prices of Guixi brand copper, however, remained firm due to short supply. Holders of imported standard-quality copper also actively cut offers. Middlemen and downstream producers stayed out of the market, depressing overall trading. In the afternoon, premiums remained unimproved, and traded prices in spot markets fell to RMB 50,650-51,050/mt. SHFE copper inventories fell 5,862 mt to 161,564 mt last week.