SHANGHAI, Aug. 2 (SMM) – SHFE 1311 copper contract opened RMB 600/mt higher at RMB 49,510/mt on Thursday, helped by rising LME copper overnight. China’s manufacturing PMI released by the National Bureau of Statistics was positive, enticing investors to buy. Meanwhile, China’s A-shares gained 1.8%, pushing SHFE copper for November delivery up to RMB 50,190/mt. In the afternoon, SHFE 1311 copper contract retreated to near RMB 50,000/mt before closing at RMB 50,020/mt, up RMB 1,110/mt or 2.27%. Trading volumes increased by 36,176 lots, but positions decreased by 23,430 lots. Despite the sharp rise in copper prices, short sellers still predominate the market, so SHFE copper may fall back again.
Spot copper in Shanghai was quoted at a premium of RMB 130-350/mt over SHFE 1308 copper contract prices on Thursday. Traded prices for standard-quality copper were between RMB 50,550-50,780/mt, and RMB 50,700-51,030/mt for high-quality copper. Spot copper premium narrowed, but prices of high-quality copper remained firm due to short supply. The price gap between high-quality copper and standard-quality copper was around RMB 200/mt. High premium deterred traders from buying, while downstream producers held to a wait-and-see stance once prices rose above RMB 50,000/mt. In the afternoon, premiums for spot copper narrowed to RMB 130-330/mt, with traded prices falling to RMB 50,500-50,800/mt. Supply for high-quality copper remained limited, but traders rarely made transactions.