SHANGHAI, Nov. 13 (SMM) – SHFE 1401 copper contract prices opened RMB 110/mt lower at RMB 51,580/mt on Tuesday. The red metal fell on aggressive selloff, but rebounded after some investors closed short positions at RMB 51,320/mt. Rising Chinese A-shares in the afternoon also helped SHFE copper for January delivery recoup some of its earlier losses, with the prices closing RMB 210/mt or 0.41% lower at RMB 51,480/mt. Trading volumes and positions of SHFE 1401 copper contracts increased 28,026 lots and 3,932 lots, respectively. Trading volumes and positions of SHFE 1402 copper contracts surged 29,684 lots and 11,018 lots, respectively. Copper prices came under greater pressure, but support at RMB 51,300/mt was solid. Most investors were awaiting results from the party plenum.
Spot copper in Shanghai was quoted at a backwardation of RMB 30-160/mt over SHFE 1311 copper contract Tuesday morning. Traded prices were RMB 51,530-51,600/mt for standard-quality copper, and RMB 51,600-51,670/mt for high-quality copper. Some traders bought spot copper while selling SHFE copper. Falling supply enabled most suppliers to quote at backwardation, depressing buying interest. Downstream producers refrained from buying in the belief that prices would fall further. Traders are optimistic that backwardation will continue to rise given the upcoming delivery of SHFE 1311 copper contracts. In the afternoon, copper supply was maple with some speculators moving goods continuously. However, most cargo holders were reluctant to budge on prices, with spot copper quoted at a backwardation of RMB 50-150/mt. Traded prices were RMB 51,580-51,700/mt, and transactions improved slightly.