SHANGHAI, Oct. 8 (SMM) – The most active SHFE 1412 copper contract rose to as high as RMB 48,500/mt during Monday’s night session after starting at RMB 47,690/mt, and ended up RMB 570/mt, or 1.2%, at RMB 48,210/mt. During the night session, trading volumes for the most active contract totaled some 140,000 lots, and positions fell 10,986 lots to 270,418 lots.
On Tuesday, SHFE copper hovered largely around RMB 48,140/mt, but fell at the tail of the trading to close up RMB 390/mt, or 0.82%, at RMB 48,030/mt. Trading volumes for the SHFE 1412 copper contract contracted by 45,034 lots, and positions shrank 22,242 lots to 259,162 lots. The price of the red metal has found solid support at RMB 47,500/mt, but still faces resistance at the 10-day moving average.
Physical copper in Shanghai was quoted Tuesday at a RMB 0-90/mt discount to the SHFE 1410 copper contract. Traded prices were RMB 48,780-48,840/mt for standard-quality copper and RMB 48,800-48,920/mt for high-quality copper. Most cargo holders were reluctant to move goods to avoid risks ahead of the week-long Chinese National Day holiday. Some cargo holders held prices firm, while only a small number of downstream producers replenished raw material stocks. Trading activity was quiet on Tuesday.
As SHFE copper retreated slightly during the afternoon trading session, physical copper traded between RMB 48,700-48,920/mt, with light transactions.