SHANGHAI, Oct. 10 (SMM) – The most active copper contract on the Shanghai Futures Exchange (SHFE), SHFE 1312 copper contract opened RMB 40/mt lower at RMB 52,400/mt on Wednesday, pulled down by falling LME copper overnight. The contract traded in a narrow range after starting the day, with the high-end price at RMB 52,440/mt. SHFE 1401 copper contract became the new most active contract near mid-day as LME copper’s retreat from USD 7,200/mt triggered massive selloff in SHFE back-month copper contracts. SHFE copper for January delivery followed LME copper down to RMB 51,750/mt before rebounding to near RMB 51,850/mt. SHFE 1312 copper contract closed down RMB 600/mt or 1.14% at RMB 51,840/mt. SHFE 1401 copper contract ended RMB 680/mt or 1.3% lower at RMB 51,680/mt, with day’s high and low at RMB 52,350/mt and 51,580/mt, respectively. Total trading volumes and positions burgeoned by 305,000 lots and 53,408 lots, respectively. January copper on the SHFE is expected to test support at RMB 51,500/mt.
Spot copper in Shanghai was offered at a contango of RMB 0-50/mt and a backwardation of RMB 0-100/mt over SHFE 1310 copper contract in the morning session. Traded prices were RMB 52,120-52,450/mt for standard-quality copper, and RMB 52,250-52,620/mt for high-quality copper. Weak demand forced some to cut offers. Standard-quality copper, in particular, was quoted at a contango over SHFE current-month copper contract. SHFE copper fell dramatically near midday, leaving suppliers split over offers. Some held quotations unchanged at the beginning, but most goods holders cut quotes. Low-end standard-quality copper was offered RMB 100/mt below SHFE 1310 copper contract. Traders bought spot copper and sold SHFE copper, while downstream producers stayed out of the market. In the afternoon, spot copper was mainly quoted between contango of RMB 0-50/mt and backwardation of RMB 0-80/mt, with traded prices falling slightly to RMB 52,100-52,250/mt. Market saw fewer supplies for high-grade copper, and most resources tradable in the market are hydro copper and standard-grade copper. Transactions were rarely made.