SHANGHAI, Aug. 13 (SMM) – The most active SHFE 1410 copper contract started Monday’s night session at RMB 49,930/mt, and then hovered largely between RMB 49,800-49,970/mt before ending down RMB 60/mt at RMB 49,870/mt. During the night session, trading volumes for the most active contract tumbled to around 60,000 lots, and positions rose slightly by 158 lots.

On Tuesday, SHFE copper prices fell to as low as RMB 49,470/mt due to broad sell-offs, and fluctuated largely around RMB 49,600/mt during the afternoon trading session. The price of the red metal followed SHFE zinc prices up to recoup most losses to finish down RMB 140/mt, or 0.28%, at RMB 49,790/mt. Trading volumes for the SHFE 1410 copper contract added by 37,974 lots, and positions increased by 11,358 lots.

In the Shanghai physical market, copper was offered Tuesday between a RMB 40/mt discount and a RMB 40/mt premium over the SHFE 1408 copper contract. Traded prices were RMB 50,080-50,140/mt for standard-quality copper and RMB 50,120-50,180/mt for high-quality copper.

A sharp fall in SHFE copper prices and a wider RMB 300/mt gap between the SHFE 1408 and 1409 copper contracts gave cargo holders an incentive to step up moving goods. As a result, physical supply continued to grow, with a variety of copper brands available in the market. Meanwhile, middlemen barely entered the market on limited profit margins. Downstream producers slightly increased purchases after copper prices fell to around RMB 50,000/mt, but held a wait-and-see attitude towards prices. Trading activity was relatively sluggish on Tuesday, with supply outstripping demand notably.

As SHFE copper prices leveled out during the afternoon trading session, the price gap between the SHFE 1408 and 1409 copper contracts remained at RMB 250/mt. The price of standard-quality copper was level with that of high-quality copper. Physical copper was largely offered between a RMB 50/mt discount and a RMB 10/mt premium and traded slightly higher at RMB 50,100-50,300/mt on Tuesday.