SHANGHAI, Aug. 29 (SMM) – Depressed by a fall in LME copper, the most active SHFE 1410 copper contract rose to RMB 50,350/mt after starting Wednesday’s night session at RMB 50,220/mt, and closed down RMB 110/mt at RMB 50,330/mt. During the night session, trading volumes for the most active contract totaled around 70,000 lots, and positions added by 3,014 lots.
On Thursday, SHFE copper initially rallied to RMB 50,500/mt, but later dipped to a trough of RMB 50,140/mt before ending down RMB 190/mt, or 0.38%, at RMB 50,250/mt. Trading volumes for the SHFE 1410 copper contract dwindled by 15,236 lots, and positions fell by 19,114 lots. Trading volumes and positions for the SHFE 1411 copper contract added by 13,272 lots and 12,590 lots, respectively. The price of the red metal will be still confronted with downside resistance for the near term with negative technical indicators.
In the Shanghai physical market, copper was offered Thursday at a RMB 70-160/mt premium over the SHFE 1409 copper contract. Traded prices were RMB 50,550-50,700/mt for standard-quality copper and RMB 50,600-50,750/mt for high-quality copper. As SHFE copper hovered initially in narrow ranges, cargo holders intended to hold prices firm, but few transactions were reported, with the price gap between high- and standard-quality copper close to zero. Spot premiums fell following a fall in SHFE copper, but the fall slowed due to some purchases by middlemen. Downstream producers remained reluctant to buy on cautious sentiment in the last two trading days of August. Spot copper premiums are projected to move in a narrower range for the near term.
As SHFE copper fell slightly during the afternoon trading session, physical copper was offered at a RMB 100-150/mt premium and traded at RMB 50,550-50,650/mt. Trading activity remained quiet, with low-priced goods barely found in the market.