SHANGHAI, Jun. 11 (SMM) – The most active SHFE copper contract tracked LME lead prices up slightly after starting Monday’s night session at RMB 47,620/mt, but then encountered resistance at RMB 47,670/mt before ending down RMB 60/mt at RMB 47,620/mt. During the night session, traded volumes for the most active contract reached some 160,000 lots, while positions gained by 5,900 lots.
On Tuesday, SHFE lead prices initially found brief support at RMB 47,360/mt, and later rebounded some to close down RMB 200/mt, or 0.42%, at RMB 47,480/mt. Traded volumes for the most active contract decreased by 266,000 lots, and positions contracted by 6,774 lots.
In the Shanghai physical market, copper was offered Tuesday between a RMB 20/mt discount and a RMB 100/mt premium over the SHFE front-month copper contract. Traded prices were RMB 48,350-48,400/mt for standard-quality copper and RMB 48,400-48,500/mt for high-quality copper. As SHFE copper prices extended losses on Tuesday, cargo holders continued to raise cash at high prices, with sufficient physical copper in the market. Prices for standard-quality copper have fallen below those for the SHFE 1406 copper contract, while prices for hydro-copper held firm due to tight supply. The market remained dominated by high-quality copper. Some middlemen entered the market to hunt for bargains, while downstream producers purchased goods only to need, leaving modest transactions.
As SHFE copper prices stabilized during the afternoon trading session, some middlemen continued to purchase goods at lower prices. After physical supply declined some, standard-quality copper was no longer offered at a discount, while premiums for high-quality copper also inched up. Physical copper was largely quoted at a RMB 0-100/mt premium and traded between RMB 48,400-48,580/mt on Tuesday.