SHANGHAI, Feb. 27 (SMM) –SHFE 1505 copper contract opened Wednesday night session at RMB 41,940/mt. The most active contract hit a ceiling at RMB 42,050/mt before ending RMB 90/mt higher at RMB 42,010/mt. Trading volumes were less than 100,000 lots, with positions up 12,360.
On Thursday, the most active contract hovered around RMB 42,050/mt in morning trade, but shot up near lunchtime, boosted by buying and rising stock market. The red metal hit an intraday high of RMB 42,610/mt at the tail of the session before ending up RMB 590/mt or 1.41% at RMB 42,510/mt. Trading volumes of SHFE 1505 copper contract soared 198,000 lots, with positions up 42,240. Trading volumes of SHFE 1506 copper contract surged 61,728 lots, with positions up 18,088. The most active contract should challenge resistance at RMB 43,000/mt.
Trading activity in Shanghai spot copper market picked up slightly on the second day after the Chinese New Year holiday. Spot copper was offered at discounts of RMB 120-230/mt over SHFE 1503 copper contract. Standard-quality copper traded between RMB 42,060-42,360/mt, and RMB 42,100-42,440/mt for high-quality copper. Sellers rushed to sell at above RMB 42,000/mt, causing spot discounts to widen. SHFE copper gained almost RMB 300/mt near lunch time, leaving market players in physical market divergent over price outlook. The price gap between standard-quality and high-quality copper expanded, luring some processors in. In the afternoon, SHFE copper rose further, leaving sellers in physical market unwilling to sell at large discounts. A few offered goods at discounts of RMB 130-220/mt. Some traders entered the market to make purchases, with traded prices reported between RMB 42,300-42,550/mt.
