SHANGHAI, Oct. 21 (SMM) – Copper for delivery in January on the Shanghai Futures Exchange (SHFE), opened RMB 60/mt lower at RMB 52,020/mt October 18. The contract drifted higher after opening thanks to upbeat Chinese economic indicators, but failed to break through RMB 52,300/mt due to selloff at highs. The red metal fell back to RMB 52,100/mt later in the day before hitting a high of RMB 52,290/mt at the tail of the session. Finally, SHFE copper for January delivery ended up RMB 170/mt or 0.33% at RMB 52,250/mt. Trading volumes and positions contracted 49,966 lots and 3,194 lots, respectively. SHFE 1401 copper contract will remain range-bound for the near future.
Spot copper in Shanghai was quoted at a contango of RMB 0-80/mt and a backwardation of RMB 0-20/mt over SHFE 1311 copper contract in the morning trading session. Traded prices were RMB 52,250-52,350/mt for standard-quality copper, and RMB 52,300-52,450/mt for high-quality copper. Cargo holders were in a rush to sell, causing backwardation to narrow. Prices of high-quality copper dropped due to plentiful supply. Contango of standard-quality copper widened slightly, though. Traders went bargain hunting, while purchases by downstream producers increased only marginally. In the afternoon, the continued selloff in spot copper market left resources offered at a contango of RMB 0-80/mt, with only quotes for Guixi copper managing to remain flat with SHFE current-month copper contract. Traded prices remained stable with morning session, but market saw mounting oversupply pressure. SHFE copper stocks increased by 10,524 mt to 172,109 mt last week, growing by over 20,000 mt in two weeks.