SHANGHAI, Jun. 12 (SMM) – The most active SHFE copper contract opened Tuesday’s night session at RMB 47,460/mt, meeting resistance at RMB 47,670/mt, and finished up RMB 100/mt at RMB 47,620 mt. During the night session, traded volumes for the most active contract fell to some 80,000 lots, and positions gained by 2,108 lots.
On Wednesday, SHFE copper prices rose to RMB 47,750/mt after testing a low at RMB 47,410/mt, and advanced to an intraday high of RMB 47,960/mt at the tail of the trading before ending up RMB 340/mt, or 0.72%, at RMB 47,860/mt. Traded volumes for the most active contract contracted by 14,290 lots, and positions expanded by 868 lots.
In the Shanghai physical market, copper was offered Wednesday at a RMB 0-130/mt premium over the SHFE front-month copper contract. Traded prices were RMB 48,450-48,570/mt for standard-quality copper and RMB 48,530-48,670/mt for high-quality copper. As SHFE copper prices rebounded, cargo holders continued to move goods at firm prices, and middlemen also entered the market with mixed views towards copper prices. Meanwhile, downstream producers were still purchasing goods only to need. Trading activity in the market improved slightly on Wednesday, with transactions done mostly among middlemen.
As SHFE copper prices climbed during the afternoon trading session, the price gap between the SHFE 1406 and 1407 copper contracts narrowed slightly. Middlemen continued to enter the market to buy low-price goods, and physical supply decreased, with standard-quality copper barely found in the market. Copper was mostly quoted at a RMB 20-140/mt premium and traded between RMB 48,530-48,700/mt on Wednesday.