SHANGHAI, Mar. 19 (SMM) – SHFE copper prices fell by the daily limit last Monday and again during Wednesday after LME copper tumbled, losing 10.7% for the week, while the SHFE/LME copper price ratio also fell below 6.8. Total traded volumes soared by 6 million lots and positions increased by 200,000 lots. The SHFE 1406 copper contract became the most active contract, with trading volumes at one point rising above 1.3 million lots, a level rarely seen in the past year. SHFE copper prices are expected to test RMB 44,000/mt repeatedly this week, given strong selling pressure. Prices may rebound to RMB 48,000/mt if solid support forms at RMB 44,000/mt, but without support prices will fall further.
In China’s spot copper markets, traders bought spot goods and sold futures since SHFE 1403 copper prices were lower than April-delivery SHFE copper prices. However, most trading remained subdued due to previous panic selling caused by plunging prices.