SHANGHAI, Jun. 23 (SMM) – The most active SHFE copper contract swung by less than RMB 200/mt after starting Thursday's ngiht session higher at RMB 48,120/mt, meeting resistance at RMB 47,300/mt, and ended up RMB 190/mt at RMB 48,270/mt. During the night session, trading volumes for the most active contract stood at around 60,000 lots, and positions shed by 1,604 lotsl.

On Friday, SHFE copper prices advanced to a high of RMB 48,810/mt, and ended up RMB 680/mt, or 1.41%, at RMB 48,760/mt. Trading volumes for the most active contract expanded by 61,534 lots, and positions contracted by 17,166 lots. Trading volumes for the SHFE 1409 copper contract increased by 85,596 lots, and positons shrunk by 17,288 lots.

In the Shanghai physical market, copper was offered Friday at a RMB 550-730/mt premium over the SHFE front-month copper contract. Traded prices were RMB 49,520-49,700/mt for standard-quality copper and RMB 49,620-49,820/mt for high-quality copper. As SHFE copper prices extended gains, market supply remained limited, with hydro-copper barely found in the market. In response, cargo holders moved goods at higher premiums, and turned unwilling to trade to hold prices firm. Prices for standard-quality copper stood firm due to tight supply, and drew closer to those for high-quality copper. Middlemen entered the market to buy low-price goods, further cutting into supply, and downstream producers stepped up purchases ahead of the weekend, with trading activity improving significantly.

As SHFE copper prices extended gains during the afternoon trading session, market supply tightened further, with high-quality copper barely found in the market and small volumes of supply from Baiyin and Zhongtiaoshan brands. Physical copper was quoted largely at a RMB 620-780/mt premium and traded higher at RMB 49,770-50,030/mt. SHFE copper inventories contracted 6,400 mt to 75,529 mt. Downstream producers largely hunted for bargains on Friday.