SHANGHAI, Mar. 20 (SMM) – The most active SHFE copper contract prices hovered above the 5-day moving average after opening at RMB 44,590/mt, but later faced resistance at the RMB 45,000/mt mark in Tuesday’s night session. The contract prices finished up RMB 110/mt at RMB 44,910/mt. During the trading hours, traded volumes stood at around 300,000 lots, while positions rose 2,478 lots. SHFE copper prices fell as low as RMB 44,490/mt after encountering resistance at RMB 45,100/mt during the afternoon trading session, and closed down RMB 60/mt or 0.13% at RMB 44,730/mt. Traded volumes contracted 54,254 lots, and positions shrunk 8,272 lots for the most active SHFE copper contract. Traded volumes gained 34,226 lots, and positions surged 24,412 lots for SHFE 1407 copper contract. Trading activity for SHFE distant-month contracts strengthened. SHFE copper prices have found support at the 5-day moving average on Wednesday.
Copper was offered between a discount of RMB 50/mt and a premium of RMB 50/mt over SHFE current-month copper contract in Shanghai on Wednesday. Traded prices were RMB 44,900-45,060/mt for standard-quality copper and RMB 44,950-45,200/mt for high-quality copper. Cargo holders moved goods at high prices against volatile SHFE copper prices, but were disinclined to trade due to stuttering premiums for high-quality copper. Purchases of standard-quality copper and hydro-copper picked up at low prices. Some large-scale traders purchased certain amount of high-quality copper, while middlemen and downstream producers actively hunted for bargains. Spot copper prices largely hovered around RMB 45,000/mt on Wednesday. As SHFE copper prices fell back during the afternoon trading session, cargo holders turned reluctant to move goods at low prices. High-quality copper could barely be found in the market, while standard-quality copper narrowed its discount over SHFE current-month copper contract. Copper was mostly offered between a discount of RMB 30/mt and a premium of RMB 70/mt, and traded lower between RMB 44,850-45,000/mt. Speculators continued to buy high-quality copper, with trading activity improving.