SMM Copper Market Morning Review (2015-3-20)

SHANGHAI, Mar. 20 (SMM) – LME copper prices rallied Thursday with Chinese investors turning more optimistic about China’s housing policies. The prices touched a high of USD 5,857/mt and closed at USD 5,840/mt, up USD 127/mt. Open interest in LME copper surged to near 370,000 which was rarely seen.

SHFE most-active copper contract started higher at RMB 42,000/mt for Thursday’s night session and rose to RMB 42,200/mt before ending at RMB 42,170/mt, up RMB 660/mt. Positions in the May delivery copper increased 8,676, and trading volumes were about 170,000 lots. Holdings in SHFE 1506 contract surged 12,402. The slower rise in SHFE copper compared with LME prices may herald more upward room today.

SHFE 1505 copper contract should trade at RMB 42,000-42,800/mt on March 20. Spot copper may be quoted at discounts of RMB 120-180/mt to SHFE front-month copper contract.