SHANGHAI, Oct. 24 (SMM) – The most active SHFE 1501 copper contract started Wednesday’s night session at RMB 47,180/mt, and then sank to RMB 46,910/mt before ending down RMB 70/mt at RMB 47,040/mt. During the night session, trading volumes for the most active contract shrank to some 100,000 lots, but positions were barely changed.
On Thursday, SHFE copper dipped as low as RMB 46,870/mt before the morning trading session, but rebounded at the tail of the trading to RMB 47,100/mt subsequently. The price of the red metal finished up RMB 10/mt, or 0.02%, at RMB 47,120/mt. Trading volumes for the SHFE 1501 copper contract shed by 61,580 lots, and positions decreased by 8,880 lots.
Physical copper in Shanghai was quoted Thursday at a RMB 30-120/mt premium to the SHFE 1411 copper contract. Traded prices were RMB 47,860-47,940/mt for standard-quality copper and RMB 47,900-48,040/mt for high-quality copper. As SHFE copper leveled off, cargo holders ramped up sales at high prices, causing supply to grow. The market remained dominated by imported copper, with physical premiums down. Quotations for hydro-copper were still firm, close to those for standard-quality copper. Middlemen barely entered the market, while a small number of downstream producers went bargain-hunting, helping improve trading activity on Thursday.
As SHFE copper rebounded during the afternoon trading session, physical copper was quoted at a RMB 20-100/mt premium and traded lower at RMB 47,850-48,000/mt. Trading activity remained light during the session.