SHANGHAI, Mar. 28 (SMM) – SHFE copper prices managed to hover between RMB 45,850-46,050/mt, and closed down RMB 210/mt at RMB 45,930/mt during Wednesday’s night session. During the trading hours, trading volumes fell to around 220,000 lots, while positions basically held flat for the most active SHFE copper contract. On Thursday, SHFE copper prices rebounded to a high of RMB 46,250/mt due to more investors liquidating positions during the afternoon trading session. The red metal, however, retreated to an intraday low of RMB 45,720/mt at the tail of the trading, and finished down RMB 410/mt, or 0.89%, at RMB 45,730/mt on Thursday. Trading volumes and positions for the most active SHFE copper contract were off 98,916 lots and 11,648 lots, respectively. Trading volumes for the SHFE 1407 copper contract contracted 22,028/mt, and positions gained 19,318 lots. SHFE copper prices are unlikely to rise significantly in the near term given negative technical indicators.
In the Shanghai physical market, copper was offered on Thursday at a premium of RMB 140-200/mt over SHFE current-month copper contracts. Traded prices were between RMB 46,300-46,350/mt for standard-quality copper and RMB 46,320-46,420/mt for high-quality copper. As SHFE copper prices lacked impetus to rebound, cargo holders moved goods to generate cash at high prices. Since market participants regarded the RMB 200/mt premium as too high, high-quality copper prices failed to rise further. Although price gap between standard-quality copper and high-quality copper narrowed to less than RMB 50/mt, middlemen traded less actively than Wednesday. Meanwhile, downstream producers purchased goods only as needed on Thursday. As SHFE copper prices fell during the afternoon trading session, cargo holders moved goods at high prices, with most transactions done with high-quality copper brands. Spot copper traded mostly between RMB 46,350-46,500/mt, at a narrower premium of RMB 120-180/mt on Thursday.