SHANGHAI, Feb. 16 (SMM) – SHFE 1504 copper contract prices increased RMB 200/mt soon after starting the day trading January 13, but failed to cross above the resistance at RMB 42,000/mt in the morning. In the afternoon, the prices managed to gain momentum to challenge RMB 420,280/mt, and closed at RMB 42,120/mt, up RMB 1,080/mt, or 2.63%. Positions in the most active SHFE copper contract decreased 17,322, while trading volumes increased 149,000 lots. Investors will continue to leave the market next week for the Chinese New Year holiday.
SHFE most-active copper contract opened at RMB 41,330/mt during Thursday’s night session and drifted higher to close at RMB 41,800/mt, up RMB 760/mt.
Spot copper quoted at discounts of RMB 180-300/mt to SHFE 1503 copper contract in Shanghai Friday morning. Traded prices were RMB 41,600-41,700/mt for standard-quality copper and RMB 41,630-41,770/mt for high-quality copper.
Sellers thirst for cash moved goods aggressively, and hydro-copper was offered at a discount of RMB 400/mt at one point. The large discount lured some financially-strong traders into buying. Later, SHFE copper increased, and buyers exited market to avoid risk. Trading activities increased from yesterday, and dealers were major contributors.
In the afternoon, spot prices were RMB 41,770-41,950/mt, and spot discounts narrowed some to RMB 150-280/mt.