SHANGHAI, Oct. 10 (SMM) – The most active SHFE 1412 copper contract surged to RMB 48,090/mt during Thursday’s night session after starting at RMB 47,630/mt, and closed up RMB 170/mt at RMB 47,740/mt. During the night session, trading volumes for the most active contract held steady at 190,000 lots, and positions gained by 4,914 lots.

On Friday, SHFE copper initially hovered around the RMB 47,500/mt mark, but fell to RMB 47,170/mt at the tail of the trading before finishing down RMB 330/mt, or 0.69%, at RMB 47,240/mt. Trading volumes for the SHFE 1412 copper contract added by 9,494 lots, and positions increased by 32,782 lots. Trading volumes for the SHFE 1501 lead contract rose by 43,576 lots, and positions expanded 29,712 lots.

Physical copper in Shanghai was quoted Friday at a RMB 40-150/mt premium to the SHFE 1410 copper contract. Traded prices were RMB 48,300-48,400/mt for standard-quality copper and RMB 48,380-48,500/mt for high-quality copper.

As SHFE copper leveled off, some middlemen continued buying high-quality copper to meet demand from long-term contracts, while downstream producers ramped up purchases at low prices. Cargo holders were inclined to hold prices firm against declining supply, helping push up physical premiums. Trading activity improved slightly on Friday.

As SHFE copper fell during the afternoon trading session, the price gap between the SHFE 1410 and 1411 copper contract expanded to around RMB 500/mt, prompting cargo holders to move goods. Physical copper was quoted largely at a RMB 30-150/mt premium and traded at RMB 48,230-48,480/mt. Trading activity was light even though some downstream producers went bargain-hunting at prices below RMB 47,300/mt. SHFE copper inventories for the week ending October 10 decreased 3,487 lots to 82,770 lots.