SHANGHAI, Oct. 22 (SMM) – The most active SHFE 1412 copper contract continued to test support at RMB 46,450/mt during Monday’s night session, and closed down RMB 40/mt at RMB 46,720/mt. During the night session, trading volumes for the most active contract hovered steadily around 110,000 lots, and positions gained by 418 lots.
SHFE copper fluctuated largely around RMB 46,800/mt during the morning trading session, meeting resistance at RMB 46,950/mt, despite better-than-expected Chinese economic indicators. The price of the red metal sank to RMB 46,600/mt subsequently, and ended down RMB 230/mt, or 0.49%, at RMB 46,530/mt. Trading volumes for the SHFE 1412 copper contract added by 14,816 lots, and positions expanded by 19,274 lots.
Physical copper in Shanghai was quoted Tuesday at a RMB 60-140/mt premium to the SHFE 1411 copper contract. Traded prices were RMB 47,630-47,700/mt for standard-quality copper and RMB 47,660-47,750/mt for high-quality copper. As SHFE copper hovered in narrow ranges, cargo holders moved goods steadily, while some middlemen entered the market to buy at low prices. The price gap between standard- and high-quality copper narrowed to less than RMB 50/mt. Downstream producers went bargain-hunting on Tuesday, leaving trading activity better than Monday.
As SHFE copper fell during the afternoon trading session, physical copper was largely quoted at a RMB 80-150/mt premium and traded lower at RMB 47,480-47,600/mt. Cargo holders refrained from selling at low prices, causing supply to fall, while a small number of downstream producers went bargain-hunting.