SMM Copper Market Daily Review (2015-3-12)

SHANGHAI, Mar. 13 (SMM) – SHFE most active copper contract remained stable early Thursday, but rose quickly in the afternoon to a high of RMB 42,610/mt, and ended the daytime trading at RMB 42,560/mt, up RMB 460/mt. Positions declined 4,936, and trading volumes 147,000 lots. Copper prices only fell slightly even after crude oil slumped and the US dollar continued to strengthen.

SHFE most-active copper contract opened at RMB 42,040/mt for Wednesday’s night session and climbed to RMB 42,240/mt briefly. The prices then fell to RMB 41,800/mt dragged by the strong US dollar and ended at RMB 41,850/mt, down RMB 250/mt. Positions in the May delivery copper increased 7,992, and trading volumes were 224,790 lots.

Spot copper was offered at discounts of RMB 20-90/mt to SHFE 1503 copper contract in Shanghai early Thursday. Standard-quality copper traded at RMB 41,920-41,950/mt and high-quality copper sold for RMB 41,880-42,000/mt. In the afternoon, most deals were made at RMB 42,080-42,200/mt.

Cargo holders still refused to budge on prices and the price gap between standard and high-quality copper narrowed. Dealers favored cheaper goods, and downstream producers mainly bought standard-quality copper and hydro-copper.