SHANGHAI, Nov. 2 (SMM) – SHFE 1401 copper contract price opened RMB 100/mt lower at RMB 51,730/mt on Friday. Upbeat China manufacturing PMI and rising Chinese A-shares drove the red metal up to RMB 52,290/mt. Finally, SHFE 1401 copper contract ended RMB 410/mt or 0.79% higher at RMB 52,240/mt. Trading volumes and positions shrank by 21,420 lots and 12,602 lots, respectively. The rally, however, was driven mainly by short sellers closing positions. Longs may take profits at highs after copper prices rise further.
Spot copper in Shanghai was quoted at a contango of RMB 30-170/mt over SHFE 1311 copper contract Friday morning. Traded prices were RMB 51,900-51,980/mt for standard-quality copper, and RMB 52,000-52,120/mt for high-quality copper. Cargo holders raised offers slightly, but downstream buyers only purchased as needed, leaving trading moderate. Most transactions were done between traders. Market players expected that contango would narrow further this week. In the afternoon, the rising SHFE copper posed difficulty for arbitrage, with spot copper supply falling noticeably. Besides, some downstream consumers started to replenish stocks for the weekend, contango for spot copper narrowed to RMB 10-160/mt. Traded prices also rose to RMB 52,000-52,252/mt. SHFE copper stocks increased by 6,197 mt to 178,343 mt last week.