SHANGHAI, Apr. 21 (SMM) –The most active SHFE copper contract price dipped during Thursday’s night session to RMB 46,450/mt, and finished up RMB 30/mt at RMB 46,600/mt. Traded volumes stood at around 90,000 lots, while positions gained 7,548 lots. SHFE copper prices fell Friday back to a low of RMB 46,240/mt, and closed down RMB 210/mt, or 0.45%, at RMB 47,360/mt. Traded volumes shed 58,440 lots, and positions gained 7,694 lots. SHFE copper prices have found support at the 20-day moving average.
In the Shanghai physical market, copper was offered Friday at a RMB 680-800/mt premium to the nearby SHFE contract. Traded prices were RMB 47,820-47,920/mt for standard-quality copper and RMB 47,880-47,980/mt for high-quality copper. With the absence of guidance from LME copper prices, SHFE copper prices consolidated narrowly on Friday. Some cargo holders were prevented from booking goods overseas, which reduced physical supply and in turn pushed up premiums further. Middlemen had limited buying interest, but downstream producers ramped up purchases, with trading activity picking up. Physical premiums are expected to remain elevated next Monday since trading will continue to be suspended on the London Metal Exchange then. As SHFE copper prices fell slightly during the afternoon trading session, physical copper was offered at a higher premium of RMB 750-830/mt, with traded prices between RMB 47,850-47,950. Some middlemen entered the market to purchase goods, but trading activity was mild. SHFE copper stocks decreased by 10,194 mt to 132,477/mt, and limited inflows promise a sustained high premium for the short term.