SHANGHAI, Mar. 14 (SMM) – LME copper prices snapped their losing streak on Wednesday. In response, the most active SHFE copper contract bounced back to find support at the RMB 44,000/mt mark, but then encountered resistance at RMB 45,110/mt in Wednesday’s night trading session. The red metal closed up RMB 100/mt at RMB 44,750/mt, rising for the first trading day in the wake of panic sell-offs. During the night session, trading volumes reached 781,164 lots, and positions rose slightly by 3,542 lots for the most active SHFE copper contract. SHFE copper prices fell back after edging up to RMB 45,000/mt due to another round of sell-offs on Thursday. The most active SHFE copper contract later dropped further to finish down RMB 240/mt or 0.54% at RMB 44,410/mt against a string of disappointing Chinese economic data released in the afternoon trading session. Trading volumes shed by 150,000 lots, while positions gained by 23,932 lots on Thursday. A bearish mood still prevailed in the market given negative technical indicators.
Copper was offered on Thursday at a premium of RMB 0-100/mt over SHFE current-month contract prices in the Shanghai market. Traded prices were RMB 44,630-44,730/mt for standard-quality copper and RMB 44,680-44,850/mt for high-quality copper. As SHFE copper prices narrowed their losses, cargo holders pushed up spot copper prices before delivery, and price gap between standard-quality and high-quality copper contracted. Middlemen entered the market to purchase spot copper and sell futures contracts, while downstream producers still stayed on the sidelines, with most transactions done by middlemen. Investors stayed on guard towards volatile copper prices on Thursday. Less spot copper supply was available in the market after copper prices fell back in the afternoon trading hours, with high-quality copper dominating the market. Spot copper was offered slightly higher at a premium of RMB 20-120/mt, and traded lower between RMB 44,400-44,800/mt. Transactions were mostly done by middlemen.