SHANGHAI, Nov. 21 (SMM) – SHFE 1402 opened RMB 210/mt higher at RMB 49,980/mt on Wednesday, helped by rising LME copper overnight. Some investors closed bear positions, pushing the most active contract up to RMB 50,500/mt. The red metal, however, fell back to hover above RMB 50,200/mt after some investors closed long positions. SHFE 1402 copper contract rebounded again at the tail of the session before closing RMB 590/mt or 1.19% higher at RMB 50,360/mt. Trading volumes and positions for the SHFE copper for February delivery were down 75,498 lots and 10,690 lots, respectively. Total traded volumes for SHFE copper fell by 150,000 lots, while total positions were down 23,830 lots.
Spot copper in Shanghai was quoted at a premium of RMB 90-190/mt over SHFE 1312 copper contract on Wednesday. Traded prices were RMB 50,680-50,740/mt for standard-quality copper, and RMB 50,740-50,820/mt for high-quality copper. The price spread between standard-quality copper and high-quality copper was limited, but trading was thin. Some traders bought spot copper while selling SHFE copper. Downstream producers stayed out of the market following bargain hunting a day earlier. In the afternoon, cargo holders slightly lower price offers to a premium of RMB 50-180/mt over the SHFE 1312 copper contract. Copper supply increased, with proportion of standard quality copper rising. Transactions were sparse.