SHANGHAI, Jun. 4 (SMM) – China’s stock markets rallied last week, but domestic copper prices were little boosted. Prices for the August copper contract on SHFE consolidated at RMB 48,700-49,200/mt, but at one point fell to RMB 48,400/mt. The SHFE/LME copper price ratio remained stable. Trading activity was down and holdings in SHFE copper also fell by about 10,000 lots. Trading activity during night session was subdued last week, with volumes holding below 100,000 lots. SMM expects SHFE most active copper contract will track LME copper prices and move this week between RMB 48,300-49,300/mt. Both positions and traded volumes are primed to improve following China’s Dragon Boat Festival holiday.
In China’s physical markets, end-of-month financial strains and increasing supply of imported copper narrowed copper premiums last week, particularly those for high-quality copper. Traders bought goods at lower prices.