SHANGHAI, Oct. 28 (SMM) – Caution prevailed in Chinese market around the Fourth Plenary Session of 18th CPC Central Committee. SHFE copper prices rose from RMB 46,600/mt to RMB 47,500/mt before pulling back to RMB 47,000/mt as Chinese stocks slipped 1.7% and as LME copper fell, presenting a slight increase of 1.6%. The SHFE/LME copper price ratio stayed around 7.08. Trading volumes and holdings in SHFE copper declined noticeably. SMM expects SHFE copper to trade between RMB 46,500-47,750/mt this week.

SMM survey shows the operating rate at China’s copper smelters rose to its highest this year in September, presaging greater oversupply pressure in China’s copper market. At the same time, production in downstream sectors failed to improve. Furthermore, cash-strapped cargo holders will be eager to sell by the end of the month. Thus, spot discounts may be reported from China’s copper market this week.