SHANGHAI, Nov. 27 (SMM) – Rising LME copper helped SHFE 1402 copper contract open RMB 110/mt higher at RMB 50,810/mt on Tuesday. The most active contract moved sideways near yesterday’s settlement price as selling pressure eased somewhat, with the low-end price at RMB 50,610/mt. SHFE copper for February delivery followed LME copper up to RMB 50,960/mt in late trading hours before falling back again to close the day RMB 90/mt or 0.18% higher at RMB 50,790/mt. Trading volumes soared 11,008 lots, while positions tumbled 18,894 lots. The red metal will continue to consolidate due to growing market caution.
Spot copper in Shanghai was quoted at a premium of RMB 90-180/mt over SHFE 1312 copper contract on Monday. Traded prices were RMB 51,020-51,100/mt for standard-quality copper, and RMB 51,080-51,160/mt for high-quality copper. Cargo holders were anxious to sell for cash, causing premium to narrow. Traders were wary of stepping in, with some buying spot copper while selling SHFE copper. Downstream producers watched from the sidelines at the beginning of the week. In the afternoon, premiums for spot copper continued to narrow SHFE copper rallying, some standard-quality copper was offered at discounts against SHFE current-month copper contract. Spot copper was primarily quoted between a contango of RMB 20/mt and a backwardation of RMB 50/mt. Traded prices were between RMB 50,950-51,050/mt. More purchases were made by both traders and downstream buyers.