SHANGHAI, Oct. 30 (SMM) – The most active SHFE 1501 copper contract hovered narrowly around RMB 47,650/mt during Tuesday’s night session after starting at RMB 47,710/mt. The price of the red metal confronted resistance at RMB 47,730/mt subsequently, and finished up RMB 260/mt at RMB 47,670/mt. During the night session, trading volumes for the most active contract totaled some 90,000 lots, and positions added by 10,328 lots.

On Wednesday, SHFE copper initially lacked impetus to rise, but surged to an intraday high of RMB 47,780/mt at the tail of the trading before closing up RMB 360/mt, or 0.76%, at RMB 47,770/mt. Trading volumes decreased by 11,220 lots, and positions shrank by 7,288 lots.

Physical copper in Shanghai was quoted Wednesday between a RMB 50/mt discount and a RMB 30/mt premium to the SHFE 1411 copper contract. Traded prices were RMB 48,150-48,200/mt for standard-quality copper and RMB 48,200-48,280/mt for high-quality copper.

As SHFE copper leveled off on Wednesday, the falling SHFE/LME copper price ratio prevented imported copper prices from falling further. Hydro-copper prices held firm due to tight supply. A small number of middlemen entered the market to buy low-priced high-quality copper, while downstream producers bought only to need.

As SHFE copper leveled out during the afternoon trading session, physical copper was quoted mostly between a RMB 50/mt discount and a RMB 30/mt premium, and traded higher at RMB 48,250-48,400/mt. Trading activity remained light on Wednesday.