SHANGHAI, Oct. 8 (SMM) – The most active copper contract on the Shanghai Futures Exchange (SHFE) opened RMB 30/mt higher at RMB 52,360/mt on September 30. HSBC’s final China manufacturing PMI for September was revised down and fell short of flash reading, but did point to a third straight month of growth, pushing Chinese stock market up slightly. SHFE copper for December delivery followed rising Chinese stock market up, but upside space was limited as investors took profits ahead of the weeklong holiday. In the afternoon session, LME copper challenged resistance at USD 7,300/mt, pushing SHFE 1312 copper contract up to RMB 52,860/mt, which ended the day at RMB 52,800/mt, up RMB 470/mt or 0.9%. Trading volumes and positions of SHFE 1312 copper contracts plunged by 47,620 lots and 17,226 lots, respectively. Total trading volumes and positions also dropped 44,050 lots and 37,330 lots, respectively.
Spot copper in Shanghai was offered at a contango of RMB 0-120/mt and a backwardation of RMB 0-50/mt over SHFE 1310 copper contract. Traded prices were RMB 52,550-52,630/mt for standard-quality copper, and RMB 52,650-52,800/mt for high-quality copper. Most market players pulled out of the market on the last trading day before the weeklong holiday, leaving market quiet. Holders of high-quality copper hiked firm due to tight supply. Only a small number of downstream producers built up stocks. In the afternoon, trading was muted.