SHANGHAI, Jul. 15 (SMM) – SHFE copper prices underperformed LME copper and moved between RMB 50,500-51,500/mt last week, losing 1.7%. The SHFE/LME copper price ratio fell to 7.1 as a result. Traded volumes for the most active SHFE copper contract generally held above 200,000 lots during night session, down from the previous level. The most active SHFE copper contract is expected to trade at RMB 50,400-51,500/mt this week.
The price gap between SHFE 1407 and 1408 copper contracts narrowed from RMB 800/mt to RMB 300/mt last week. Cargo holders in spot markets attempted to raise quotations, but downstream buyers refrained from buying. Spot copper was mainly offered between a discount of RMB 150/mt to a premium of RMB 30/mt to SHFE 1407 copper contract prices. Supply of imported copper increased with price spread between different brands widening. Some middlemen purchased spot goods at lows while selling futures.