SHANGHAI, Oct. 12 (SMM) – Copper for delivery in January on the Shanghai Futures Exchange (SHFE), opened RMB 190/mt higher at RMB 51,600/mt on Friday, shored up by LME copper reversing losses overnight. This was followed by failed attempts to break through RMB 51,890/mt, with the most active SHFE copper contract price falling back to RMB 51,500/mt towards mid-day due to selloff at highs and investors taking profits. In the afternoon trading session, the Shanghai Composite Index rebounded by 1.7%, driving the red metal up, but resistance at the daily moving average remained strong. Finally, SHFE 1401 copper contract ended the day RMB 240/mt or 0.47% higher at RMB 51,650/mt. Trading volumes grew by 6,786 lots, but positions dropped by 678 lots. SHFE copper for January delivery showed a tendency to trend up.
Spot copper in Shanghai was quoted at a contango of RMB 0-50/mt and a backwardation of RMB 0-100/mt over SHFE 1310 copper contract on Friday. Traded prices were RMB 52,000-52,200/mt for standard-quality copper, and RMB 52,100-52,350/mt for high-quality copper. Although goods on the market still consisted primarily of imported standard-quality copper, contango of standard-quality copper narrowed some. Cargo holders became anxious to sell after SHFE copper prices fell back near noon, preventing backwardation from rising. Traders favored high-quality copper, and some downstream producers also entered the market, improving trading slightly. In the afternoon, both quotes and traded prices for spot copper remained little changed. SHFE copper stocks increased by 10,461 mt to 161,585 mt during the week past. A large amount of imports arrived at ports, but buying interest downstream and goods delivery were negatively affected by the typhoon.