SHANGHAI, Apr. 3 (SMM) – SHFE copper prices followed LME copper prices down to RMB 46,500/mt after starting at RMB 46,680/mt, and later leveled out to end up RMB 10/mt, at RMB 46,640/mt during Tuesday’s night session. Trading volumes fell by around 80,000 lots, and positions gained by 8,654 lots. On Wednesday, SHFE copper prices rallied to RMB 47,220/mt, helped by rising LME copper prices in the morning trading session, but then fell back immediately to hover around RMB 46,650/mt. The red metal finished up RMB 20/mt, or 0.04%, at RMB 46,650/mt on Wednesday. Trading volumes for the most active SHFE copper contract grew by 164,000 lots, while positions increased by 24,338 lots.
In the Shanghai physical market, copper was offered Wednesday at a premium of RMB 140-200/mt over SHFE current-month copper contract price. Traded prices were RMB 47,100-47,150/mt for standard-quality copper and RMB 47,140-4,7200/mt for high-quality copper. Cargo holders continued to push up spot premiums due to improving liquidity conditions and limited supply as a result of copper being tied up in the futures market. But trading was light at a premium of RMB 200/mt, with middlemen purchasing spot copper and selling off copper futures. Downstream producers purchased goods only as needed on Wednesday. As SHFE copper prices hovered in narrow ranges during the afternoon trading session, premiums and traded prices for spot copper were basically unchanged. Quotations for various brands, however, were mixed, with little hydro-copper supply found in the market. Prices for standard-quality copper were firm due to short supply and were virtually the same as those of high-quality copper. Downstream producers entered the market to grab bargains, believing that prices will rebound in the foreseeable future.