SHANGHAI, Nov. 25 (SMM) – The Shanghai Composite Index rallied last week by over 2%, leaving SHFE copper prices more resistant to declines than LME copper. SHFE copper prices fell to a low of RMB 49,590/mt, with moving range down below RMB 51,000/mt. Trading volumes grew by over 500,000 mt, while holdings fell by more than 10,000 lots. Bearish mood still lingered in the market.
In the copper spot market, supply was sufficient after hedged copper entered the market, restricting copper premiums to a RMB 80-200/mt range. Traders bought spot and sold futures, and downstream producers increased purchases after prices fell to nearly RMB 50,000/mt in early week trading. Buying interest waned, however, after prices rebounded later in the week. Tight month-end cash flows were also blamed for weak buying interest.