SHANGHAI, Mar. 21 (SMM) – LME copper prices fell as low as to USD 6,300/mt, and closed higher at USD 6,580/mt on Wednesday. SHFE copper prices followed LME copper prices down to a low of RMB 43,770/mt last seen in July 2009, but surged to RMB 46,500/mt at the tail of the trading in Wednesday’s night session, breaking above the 10-day moving average. During the trading hours, trading volumes exceeded 1 million lots, while positions tumbled by over 38,000 lots. SHFE copper prices hovered around RMB 44,750/mt after starting at RMB 44,800/mt on Thursday. In the Asian trading hours, markets continued to digest the US Federal Reserve’s statements, while the US dollar index held steady above the 80 mark. The red metal fell again in the afternoon trading session, and ended up RMB 440/mt, or 0.98%, at an intraday low of RMB 45,190/mt. Trading volumes neared 1.6 million lots, up 872,000 lots, and positions contracted by 51,690 lots. Positions for SHFE 1405 copper contract and 1406 copper contract decreased by more than 70,000 lots, with turnover rate reaching 400%.

Copper was offered at a premium of RMB 0-100/mt over SHFE current-month copper contract prices in Shanghai on Thursday. Traded prices were RMB 45,650-45,780/mt for standard-quality copper and RMB 45,700-45,880/mt for high-quality copper. After SHFE copper prices rebounded dramatically on Thursday, a majority of cargo holders offered high prices to push spot premium higher, but received little recognition in the market. An increasing number of downstream producers stayed out of the market, awaiting guidance from clearer SHFE copper price movements. As SHFE copper prices continued to fall during the afternoon trading session, spot trading activity slowed, with transactions done mostly by middlemen. High-quality copper was offered lower at a premium of RMB 40-80/mt over SHFE current-month copper contract prices, while standard-quality copper traded at a par between RMB 45,400-44,750/mt.