SHANGHAI, Jun. 25 (SMM) – Prices for the most active SHFE copper contract found brief support at RMB 49,480/mt after starting Monday’s night session at RMB 49,560/mt. SHFE copper prices encountered resistance at RMB 49,690/mt subsequently, and finished up RMB 300/mt at RMB 49,580/mt. During the night session, trading volumes totaled around 70,000 lots, and positions added by 1,746 lots.

On Tuesday, SHFE copper prices initially dipped to a low of RMB 48,230/mt, and rebounded slightly at the tail of the trading to end up RMB 120/mt, or 0.24%, at RMB 49,400/mt. Trading volumes for the most active contract contracted by 146,000 lots, and positions shrank by 4,864 lots.

In the Shanghai physical market, copper was offered Tuesday at a RMB 350-580/mt premium over the SHFE front-month copper contract. Traded prices were RMB 50,150-50,250/mt for standard-quality copper and RMB 50,300-50,450/mt for high-quality copper. As a rebound in SHFE copper prices met resistance and cash flows tightened at the mid-year point, cargo holders stepped up moving goods to raise cash, inflating copper supply. As a result, physical premiums fell sharply, and high-quality copper prices hovered at low levels due to ample supply. Imported copper also secured higher market share. Middlemen expressed limited buying interest at present premiums, and downstream producers regarded prices above RMB 50,000/mt as too high, with light trading activity on Tuesday.

As SHFE copper prices swung in ranges during the afternoon trading session, cargo holders continued to move goods in large volumes, causing physical premiums to narrow further. Copper was largely quoted at a RMB 300-530/mt premium and traded at RMB 50,030-50,270/mt, with Guixi brand offered as low as a RMB 480/mt premium. Trading remained light during the session.