SHANGHAI, Aug. 11 (SMM) – SHFE 1410 copper contract prices followed LME copper down last week. Although SHFE copper derived some support from a 1.5% rise in the Shanghai Composite Index, stop-loss orders from the price fall pushed the price of copper for October delivery down from RMB 50,700/mt to RMB 49,500/mt last week, shedding 2.4%. The SHFE/LME copper price ratio edged higher to 7.15. SHFE copper positions plunged 40,000 lots, but investors then retreated from selling as seen in the decline during night trading. Traded volumes, though off 150,000 lots for the week, did improve day by day.

SHFE copper prices are expected to move in a narrow range of RMB 49,300-50,800/mt this week.

Supply of imported copper continued to grow in China’s spot copper markets after the SHFE/LME copper price ratio rose. Cargo holders were active in selling, capping any increase in spot premiums. As notable, the price difference between standard and high-quality copper narrowed since the cheaper standard-quality copper gained popularity among traders.