SHANGHAI, Nov. 29 (SMM) – SHFE 1402 copper contract started Thursday RMB 140/mt lower at RMB 50,470/mt, dragged down by falling LME copper. Some investors closed short positions, while some increased long positions, driving the most active contract up to RMB 50,690/mt. Nevertheless, the red metal tumbled to an intraday low of RMB 50,320/mt at the tail of the session due to plunging LME copper and selling at highs before finishing at RMB 50,420/mt, a drop of RMB 190/mt or 0.38%. Trading volumes and positions rose 31,752 lots and 9,088 lots, respectively.
Spot copper in Shanghai was quoted between a discount of RMB 30/mt and a premium of RMB 30/mt over SHFE 1312 copper contract on Thursday. Traded prices were RMB 50,720-50,780/mt for standard-quality copper, and RMB 50,740-50,820/mt for high-quality copper. Tight supply allowed holders of standard-quality copper to offer at a smaller discount over SHFE current-month copper contracts. Traders went bargain hunting, while downstream producers stayed out of the market against cash squeeze. In the afternoon, some traders bought spot goods and sold on futures markets, and spot quotations increased on falling spot supply. A few goods were offered at a high premium of RMB 120/mt against the SHFE current month copper contract after the slump in SHFE copper prices. Spot copper was mainly offered between a discount of RMB 20/mt and a premium of RMB 50/mt, with traded prices at RMB 50,650-50,850/mt.