SHANGHAI, Oct. 24 (SMM) – Copper for delivery in January on the Shanghai Futures Exchange (SHFE) started RMB 280/mt higher at RMB 52,490/mt on Wednesday, driven by rising LME copper overnight. The red metal crept higher to RMB 52,560/mt, but wiped out gains before noon since pervasive caution prompted longs to close positions or sell at highs and since China’s A-shares lost over 1%. SHFE 1401 copper contract fell further to RMB 52,030/mt in the afternoon before closing the day at RMB 52,100/mt, down RMB 110/mt or 0.21%. Trading volumes and positions were up 63,244 lots and 5,322 lots, respectively.
In Shanghai spot markets, cargo holders were in a rush to sell, dragging down quotes for spot copper, with only prices for hydro copper holding steady due to limited supply. Spot copper was mainly quoted between a contango of RMB 150/mt and a backwardation of RMB 50/mt over SHFE 1311 copper contract in the morning. Traded prices were RMB 52,200-52,400/mt for standard-quality copper, and RMB 52,270-52,550/mt for high-quality copper. A small number of traders went bargain hunting, while downstream producers were cautious about buying, keeping trading muted. The further weakening of SHFE copper kept goods holders active in selling in the afternoon, and quotations remained flat with levels in the morning. Traded prices fell to RMB 52,100-52,250/mt. Downstream buyers remained unwilling to purchase.