SHANGHAI, Apr. 2 (SMM) – The SHFE copper for June delivery drifted higher to RMB 43,300/mt after starting Wednesday’s daytime trading powered by stronger China PMI data and touched RMB 43,500/mt in the morning. Later, the prices gave back some earlier gains and ended at RMB 43,260/mt, down RMB 510/mt. Positions in the most active contract increased 4,040 to 387,568, while trading volumes shrank by 14,000 lots. Iron ore and rebar prices continued to fall despite stimulus polices, suggesting that expectation for the peak demand season has been priced in.

Spot copper in Shanghai market quoted at discounts of RMB 0-90/mt to SHFE 1504 copper contract Wednesday morning, with standard-quality copper trading at RMB 43,340-43,460/mt and high-quality copper selling for RMB 43,360-43,480/mt.

Cargo holders offered high prices early today, and many dealers sourced goods in the market after SHFE copper rallied, allowing spot discounts to narrow quickly. High-quality copper was offered virtually on par with SHFE 1504 copper contract prices near midday. However, trading activities declined later. Downstream buyers mostly held on the sidelines.