SHANGHAI, Oct. 18 (SMM) – Copper for delivery in January on the Shanghai Futures Exchange (SHFE), opened RMB 320/mt higher at RMB 52,520/mt on Thursday, as LME copper recovered losses overnight. However, the contract wiped out earlier gains after hitting RMB 52,660/mt, weighted down by longs taking profits. This was exacerbated by short sellers entering the market, sending the red metal down below RMB 52,000/mt before noon. In the afternoon session, LME copper failed to hold onto USD 7,200/mt, driving SHFE 1401 copper contract down further to RMB 51,730/mt. Finally, SHFE copper for January delivery ended down RMB 400/mt or 0.77% at RMB 51,800/mt. Trading volumes and positions soared by 22,888 lots and 10,670 lots, respectively. The red metal will test support at RMB 51,800/mt.
Spot copper in Shanghai was quoted at a contango of RMB 0-60/mt and a backwardation of RMB 0-80/mt over SHFE 1311 copper contract on Thursday. Traded prices were RMB 52,250-52,350/mt for standard-quality copper, and RMB 52,280-52,550/mt for high-quality copper. SHFE copper drifted lower after a high opening, leaving spot copper suppliers anxious to sell. This caused backwardation to narrow. SHFE copper dropped further during the second trading session, but holders of high-quality copper actually raised offers. The price gap between different brands of standard-quality copper exceeded RMB 30/mt. Downstream producers stayed out of the market against falling SHFE copper. In the afternoon, some cargo holders became reluctant to sell after the SHFE current month copper contract price fell to RMB 52,000/mt, but most still kept their quotes little changed from the morning session. Supply remained ample, and spot copper was offered between a contango of RMB 0-70/mt and a backwardation of RMB 0-80/mt. Traded prices edged lower to RMB 52,000-52,250/mt, with deals sparsely made.