SHANGHAI, Apr. 22 (SMM) – SHFE copper prices fell from RMB 47,000/mt to RMB 45,750/mt at the beginning of last week, but then followed LME copper price up to hit RMB 46,500/mt. The SHFE/LME copper price ratio recovered slightly. Positions for SHFE 1407 copper contract declined, but those for SHFE 1408 copper contracts rose sharply. Trading during SHFE night sessions was up last week, with traded volumes at around 200,000-300,000 lots. The most active SHFE copper prices should move between RMB 46,300-47,300/mt this week. The LME will be closed on Monday for the Easter holiday, which may allow the SHFE/LME copper price ratio to continue rising.
Spot premiums in China’s copper market showed greater volatility after SHFE copper prices began fluctuating widely. The price gap between SHFE 1404 and 1405 copper contracts was still expanding just before the delivery date, and spot premiums rose to RMB 500-600/mt. Cargo holders were active selling goods at highs. The strong selling interest then pushed spot premiums down, with some goods even quoted at discounts of RMB 300/mt against the SHFE current-month copper contract prices. The price spread between different brands grew to RMB 500/mt. However, supply in physical market remained tight after the delivery date, allowing spot premiums to rise again to nearly RMB 800/mt, a high last seen in May 2009.