SHANGHAI, Nov. 7 (SMM) – SHFE 1401 copper contract prices opened RMB 30/mt higher at RMB 51,600/mt on Wednesday. The red metal hovered near RMB 51,600/mt before sinking to RMB 51,360/mt on massive selloffs. SHFE 1401 copper contract hit a session high of RMB 51,690/mt in the afternoon session, but fell again before the session ended due to falling Chinese A-shares, closing RMB 20/mt or 0.04% higher at RMB 51,590/mt. Trading volumes tumbled by 16,298 lots, but positions surged by 7,014 lots.
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 Wednesday morning. Traded prices were RMB 51,500-51,600/mt for standard-quality copper, and RMB 51,550-51,750/mt for high-quality copper. Some traders bought aggressively in the morning, helping narrow contango. High-quality copper was offered at a backwardation. Downstream producers stepped in once prices fell back during the second trading session. In the afternoon, price gap between SHFE 1311 and 1312 copper contracts narrowed. Goods available in the spot market declined, but transactions were limited. Some traders sold goods at lower prices, and spot copper was offered between a contango of RMB 70/mt and a backwardation of RMB 20/mt. Traded prices were RMB 51,650-51,800/mt.