SHANGHAI, Oct. 17 (SMM) – Copper for delivery in January on the Shanghai Futures Exchange (SHFE), opened RMB 20/mt higher at RMB 52,200/mt on Wednesday. The contract then fell back after hitting a high of RMB 52,470/mt given a 2.2% decline in the Shanghai Composite Index, and stayed below the daily moving average in the afternoon session. Finally, SHFE 1401 copper contract closed the day out at RMB 52,220/mt, up RMB 40/mt or 0.08%. Trading volumes and positions increased by 98,194 lots and 4,054 lots, respectively. Support at the daily moving average is to be tested repeatedly.
Spot copper in Shanghai was quoted at a contango of RMB 0-20/mt and a backwardation of RMB 0-140/mt over SHFE 1311 copper contract in the morning. Traded prices were RMB 52,350-52,500/mt for standard-quality copper, and RMB 52,430-52,580/mt for high-quality copper. Cargo holders raised offers now that SHFE 1311 copper contracts have shifted to the new current-month contracts, but higher prices deterred buyers from buying. Low buying interest and ample supply compelled suppliers to cut offers, with standard-quality copper quoted at a contango near mid-day. Traders went bargain hunting, while downstream producers purchased only as needed. In the afternoon, spot copper was offered between a contango of RMB 0-20/mt and a backwardation of RMB 0-100/mt, with traded prices down slightly to RMB 52,300-52,450/mt. Spot market remained under oversupply pressure.