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SMM Copper Market Daily Review (2014-3-21)
Mar 24,2014 09:09CST
price review forecast
SHFE copper prices initially fell to RMB 44,720/mt, and later held steady between RMB 44,900-45,200/mt in Thursday’s night session.

SHANGHAI, Mar. 24 (SMM) – SHFE copper prices initially fell to RMB 44,720/mt, and later held steady between RMB 44,900-45,200/mt in Thursday’s night session. During the trading session, trading volumes remained at 400,000 lots, while positions shed 1,440 lots. The most active SHFE copper contract prices were subdued below RMB 45,200/mt after opening at RMB 44,900/mt, and later followed LME copper prices up to a high of RMB 45,640/mt. The contract prices closed down RMB 20/mt, or 0.04% at RMB 45,170/mt. Trading volumes were 845,000 lots, and positions contracted 26,664 lots to nearly 370,000 lots for the most active SHFE copper contract. Trading volumes gained 965,000 lots to 1.59 million lots, and positions rose 13,154 lots for SHFE 1407 copper contract. SHFE copper prices will find support at RMB 46,000/mt in the short term.

Copper was offered at a premium of RMB 20-120/mt over SHFE current-month contract prices on Friday. Traded prices were RMB 45,280-45,420/mt for standard-quality copper and RMB 45,340-45,480/mt for high-quality copper. As SHFE copper prices lacked impetus to rebound, cargo holders moved goods steadily in the morning trade, with spot premium almost unchanged from Thursday. Spot premium later inched up in the wake of a sharp fall in SHFE copper prices. Downstream produces stepped up purchasing goods ahead of the weekend. Trading activity improved appreciably for standard-quality copper, but was restrained a tad for high-quality copper at a premium of around RMB 100/mt. A majority of speculators preferred spot copper on Friday due to high volatility in SHFE copper prices, with modest trading volumes.

SHFE copper prices rallied last Friday during the afternoon trading session, boosting spot dealers’ confidence in a rebound in copper prices this week. As price gap between near-month contracts and distant-month contracts expanded to more than RMB 400/mt, speculators entered the market actively. Quotations for high-quality copper rose to a premium of RMB 100-130/mt. Cargo holders of standard-quality copper mostly were reluctant to sell, with supply from India even advancing to a premium of RMB 50-60/mt. Standard-quality copper traded higher between RMB 45,450-45,750/mt. With a rebound in SHFE copper prices, trading activity turned brisker in the afternoon.

SHFE copper prices
spot copper prices

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