SHANGHAI, Nov. 11 (SMM) – SHFE 1401 copper contract prices opened RMB 20/mt lower at RMB 51,360/mt on Friday. Investors closed positions to avoid risks and Chinese A-shares slipped 1%, keeping the red metal in check. However, SHFE 1401 copper contract followed LME copper up to RMB 51,600/mt later in the day, though giving back some gains at the tail of the session, and closed the day out RMB 110/mt or 0.21% higher at RMB 51,490/mt. Trading volumes added 10,822 lots, but positions dropped 1,204 lots. Wait-and-see mood was fanned ahead of the release of US nonfarm payrolls, but prices are expected to show clearer direction this week.
Spot copper in Shanghai was quoted at a contango of RMB 0-50/mt and a backwardation of RMB 0-50/mt over SHFE 1311 copper contract in the morning. Traded prices were RMB 51,620-51,720/mt for standard-quality copper, and RMB 51,680-51,820/mt for high-quality copper. Some traders became eager to sell at highs after SHFE copper rebounded. Buyers shied away from higher prices, forcing cargo holders to cut offers. Traders refrained from buying, while downstream producers increased purchases slightly. In the afternoon, cargo holders raised backwardation after SHFE copper surrendered earlier gains, with spot copper offered between a contango of RMB 30/mt and a backwardation of RMB 70/mt. Traded prices remained little changed in the afternoon. SHFE copper stocks dropped 440 mt to 177,903 mt last week.