SHANGHAI, Jun. 6 (SMM) – Dragged down by LME copper prices falling below the USD 6,800/mt mark, SHFE copper prices opened significantly lower at RMB 47,880/mt during Wednesday’s night session. The red metal later recouped some losses due to shorts taking profits, but still encountered resistance at RMB 48,140/mt before ending down RMB 90/mt at RMB 48,130/mt. During the night session, traded volumes rose to around 150,000 lots, while positions added 896 lots.
On Thursday, SHFE copper prices hovered largely between RMB 48,000-48,200/mt, but rose to an intraday high of RMB 48,340/mt at the tail of the trading, ending up RMB 100/mt, or 0.21%, at RMB 48,320/mt. Traded volumes for the most active contract expanded 43,428 lots, while positions shed 3,588 lots.
Trading activity turned lighter after SHFE copper prices gradually stabilized during the afternoon trading session. Some cargo holders of high-quality copper voluntarily lowered premiums to make deals, while prices for standard-quality copper remained firm. Physical copper was quoted largely at a RMB 400-520/mt premium, and traded between RMB 49,880-50,080/mt on Thursday.