SHANGHAI, Oct. 11 (SMM) – Copper for delivery in January on the Shanghai Futures Exchange (SHFE), gapped RMB 520/mt lower at RMB 51,350/mt on Thursday, weighted down by falling LME copper. The contract fluctuated in a narrow range between RMB 51,300-51,500/mt for most of the session, with day’s high and low of RMB 51,260/mt and RMB 51,540/mt, respectively. Selling pressure at highs prevented the SHFE copper from rising. Finally, SHFE 1401 copper contract price finished RMB 460/mt or 0.89% lower at RMB 51,410/mt. Trading volumes plummeted by 108,000 lots, while positions soared by 17,498 lots. The SHFE copper for January delivery is expected to test support at the 60-day moving average.
Spot copper in Shanghai was quoted at a contango of RMB 0-80/mt and a backwardation of RMB 0-100/mt over SHFE 1310 copper contract on Thursday. Traded prices were RMB 51,820-51,880/mt for standard-quality copper, and RMB 51,930-52,050/mt for high-quality copper. Spot copper suppliers held offers flat with previous two days. As the SHFE/LME copper price ratio rose further, favorable for copper imports, holders of imported standard-quality copper cut offers. Prices for hydro-copper increased due to limited supply, allowing its price gap with standard-quality copper to narrow. Downstream producers built up stocks in small amounts, leaving transactions unimproved. In the afternoon, quotes for spot copper remained little changed, but traded prices dropped marginally to RMB 51,800-52,000/mt. Deals were rarely reported, as traders also stayed on the sidelines.