SMM Copper Market Daily Review (2015-2-12)

SHANGHAI, Feb. 13 (SMM) – The April-delivery copper fell rapidly to RMB 40,840/mt after opening on Thursday and hovered near RMB 40,930/mt in the morning. In the afternoon, the red metal rallied to RMB 41,050/mt and touched a high of RMB 41,120/mt before closing up RMB 70/mt at RMB 41,110/mt. Positions in the most active SHFE copper contract decreased 7,086, and trading volumes declined 80,000 lots.

SHFE most-active copper contract opened at RMB 41,200/mt during Wednesday’s night session and ended at RMB 41,000/mt, down RMB 40/mt.

Spot discounts in Shanghai market continued to widen to RMB 160-300/mt early Thursday. Traded prices were RMB 40,720-40,840/mt for standard-quality copper and RMB 40,880-40,940/mt for high-quality copper.

Cargo holders eager to sell quoted at discounts of RMB 160-260/mt early, but ample supply caused discounts to expand. Goods deliveries were hindered as logistics companies stopped operation. In the afternoon, spot prices were RMB 40,870-40,970/mt, downstream buyers rarely entered the market before the holiday.