SHANGHAI, Jul. 17 (SMM) – The most active SHFE 1409 copper contract hovered largely between RMB 50,480-50,710/mt after starting Tuesday's night session at RMB 50,600/mt, and ended up RMB 40/mt at RMB 50,540/mt. During the night session, trading volumes for the most active contract held steady at around 180,000 lots, and positions added by 7,884 lots. Meanwhile, positions for the SHFE 1410 copper contract also gained by 7,612 lots.

On Wednesday, SHFE copper prices crept lower after meeting resistance at RMB 50,650/mt, and later fell further to RMB 50,500 /mt, surrendering early gains. The red metal dipped to a low of RMB 50,380/mt at the tail of the trading and finished down RMB 60/mt, or 0.12%, at RMB 50,440/mt. Trading volumes for the SHFE 1 409 copper contract shed by 150,000 lots, but positions rose by 490 lots. Trading volumes for the SHFE 1410 copper contract decreased by 16,448 lots, and positions expanded by 14,686 lots. SHFE copper prices confront growing pressure from negative technical indicators.

On July 16, refined copper in Shanghai physical market was quoted between a discount of RMB 20/mt and a premium of RMB 100/mt premium over the SHFE 1408 copper contract prices. Traded prices were RMB 50,830-50,970/mt for standard-quality copper and RMB 50,900-51,070/mt for high-quality copper.

Cargo holders tried to hold prices flat with Tuesday’s level after SHFE 1408 copper contract rolled over to the front-month contract. However, soft consumption caused some sellers to lower quotes later. Most goods available in the market are standard-quality and high-quality copper. Traders were less willing to purchase, while downstream buyers started sourcing goods after copper prices stabilized.

As SHFE copper prices fell back during the afternoon trading session, physical copper was offered between a RMB 60/mt discount and a RMB 60/mt premium, with increasing supply, and traded at RMB 50,750-50,950/mt. Middlemen entered the market to buy low-priced goods, contributing to improving trading activity on Wednesday.