SHANGHAI, Jun. 27 (SMM) – Prices for the most active SHFE copper contract rallied to a high of RMB 49,550/mt after starting Wednesday’s night session at RMB 48,950/mt, and ended up RMB 440/mt at RMB 49,460/mt. Trading volumes for the most active contract rose to around 150,000 lots, and positions surged by 15,842 lots.

On Thursday, SHFE copper prices advanced to as high as RMB 49,680/mt during the afternoon trading session, and finished up RMB 570/mt, or 1.16%, at RMB 49,590/mt. Trading volumes for the most active contract gained by 153,000 lots, and positions expanded by 15,106 lots.

In the Shanghai physical market, copper was offered Thursday at a RMB 150-420/mt premium over the SHFE front-month copper contract. Traded prices were RMB 50,430-50,570/mt for standard-quality copper and RMB 50,570-50,730/mt for high-quality copper.

SHFE copper prices extended gains on Thursday. In response, cargo holders continued to trade in large volumes to raise cash, pressured by tight liquidity at the end of June. Premiums for high-quality copper, however, remained firm, since some supply was used to satisfy demand from long-term contracts. In contrast, premiums for standard-quality copper fell sharply, and those for hydro-copper were quoted below RMB 100/mt by the midday due to ample supply. Some middlemen with sufficient cash flows entered the market to buy low-priced goods, while downstream producers expressed little buying interest on Thursday.

As SHFE copper prices rallied further during the afternoon trading session, premiums for high-quality copper narrowed, but those for standard-quality copper remained unchanged. Physical copper was largely quoted at a RMB 150-380/mt premium and traded slightly higher at RMB 50,570-50,770/mt. Trading activity for standard-quality copper improved to a small extent on Thursday.