SHANGHAI, Apr. 15 (SMM) – SHFE 1506 copper contract started at RMB 43,650/mt during Monday’s night session and soon dropped to end at RMB 43,360/mt, down by RMB 310/mt. Positions in the most active contract grew 2,126 and trading volumes were less than 100,000 lots.
The most active SHFE copper contract moved lower to RMB 43,300/mt after opening on Tuesday and followed LME copper down in the afternoon. The prices then dropped to RMB 42,580/mt after distant-month contract suffered selling pressure, and ended at RMB 42,860/mt, down RMB 810/mt. Positions in the most active contract increased 14,622, and trading volumes were up 48,452 lots. Markets are now waiting for economic releases from China.
Spot copper was offered at premiums of RMB 20-70/mt to SHFE 1504 copper contract on Tuesday. Prices are RMB 43,480-43,540/mt for standard-quality copper and RMB 43,500-43,580/mt for high-quality copper. In the afternoon, hedged goods entered the market after the SHFE copper slumped RMB 700/mt. Traded prices fell to RMB 42,900-43,480/mt.
Goods holders offered premiums at RMB 50-80/mt early today, but buyers rejected the high prices with SHFE 1504 copper contract prices underperforming SHFE 1505 copper contract. Suppliers thus cut premiums to RMB 20-50/mt. Some traders entered the market near midday after the price gap between 1504 and 1505 copper contracts narrowed. Supply of high-quality copper remained large. Prices of hydro-copper were close to those of standard-quality copper. Traders remained major participants in the market, and downstream buyers only bought on needs.