SHANGHAI, Oct. 30 (SMM) – SHFE 1401 copper contract price started RMB 10/mt lower at RMB 51,490/mt on Tuesday, as LME copper fell overnight. Massive selloff and falling Chinese A-share sent the red metal down to RMB 51,000/mt. SHFE 1401 copper contract, however, recouped earlier losses after short sellers closed positions, closing RMB 10/mt or 0.02% higher at RMB 51,510/mt. Trading volumes and positions were up 167,000 lots and 20,946 lots, respectively. SHFE copper for January delivery still faces downward pressure.
Spot copper in Shanghai was quoted at a contango of RMB 0-120/mt over SHFE 1311 copper contract Tuesday morning. Traded prices were RMB 51,350-51,500/mt for standard-quality copper, and RMB 51,400-51,650/mt for high-quality copper. Spot copper suppliers remained anxious to sell at contango to generate cash. Traders of financial strength still favored cheap resources, while downstream producers, expecting copper prices to fall, refrained from entering the market. In the afternoon, standard-quality copper was rarely found, and price gap between high-quality and standard-quality copper narrowed. Spot copper was mainly quoted at a contango of RMB 30-140/mt over the SHFE 1311 copper contract, and traded prices remained unchanged. Most transactions were done between traders.