SHANGHAI, Apr. 25 (SMM) – The most active SHFE copper contract price started Wednesday’s night session at RMB 46,660/mt, swinging by only RMB 100/mt, and subsequently tracked LME lead prices up to close RMB 130/mt higher at RMB 46,760/mt. Traded volumes hovered around 100,000 lots, while positions remained essentially unchanged. On Thursday, SHFE copper prices rallied above the RMB 47,000/mt mark, helped by LME copper prices, and later advanced further to a high of RMB 47,330/mt before ending up RMB 620/mt, or 1.33%, at RMB 47,250/mt. Traded volumes and positions for the most active SHFE copper contract soared 80,118 lots and 13,916 lots, respectively. Totaled traded volumes added 142,000 lots, but total positions shed 3,088 lots.

In the Shanghai physical market, copper was offered Thursday at a premium of RMB 540-680/mt over the nearby SHFE contract. Traded prices were RMB 48,250-48,400/mt for standard-quality copper and RMB 48,300-48,500/mt for high-quality copper. As SHFE copper prices staged a sharp rebound, cargo holders turned disinclined to move goods in an attempt to push up physical premiums, resulting in a shortage of copper supply. Rising premiums along with SHFE copper prices gave some middlemen incentives to purchase goods, but downstream producers bought goods only on an as-needed basis. As SHFE copper prices extended gains during the afternoon trading session, some middlemen and downstream producers entered the market to purchase copper. Declining supply pushed up physical premiums to RMB 600-720/mt, with traded prices rising to the RMB 48,500-48,700/mt range.