SHANGHAI, Feb. 16 (SMM) – Chinese stocks rebounded nearly 5.67% at the beginning of last week. SHFE most active copper contract climbed to RMB 42,000/mt powered by short-covering, but failed to make a breakthrough. Positions dropped sharply. SHFE 1502 copper contract expired early on February 10 due to the upcoming Chinese New Year holiday.
Spot discounts in China’s copper market widened last week as cargo holders were eager to sell before the Chinese New Year holiday. Discounts hit RMB 200/mt for high-quality copper and RMB 300/mt for standard-quality copper. Large spot discounts lured dealers into buying.
Positions in SHFE copper have declined to about 800,000 last week, presaging limited trading activities this week. Thus, SMM expects SHFE copper to trade at RMB 41,000-42,200/mt.