SHANGHAI, May 5 (SMM) – SHFE copper drifted higher but failed to advance further after a brief rally to RMB 44,230/mt with strong resistance at RMB 44,000/mt and support at RMB 43,500/mt. Thus, SHFE/LME copper price ratio slipped from 7.2 to 7.17-7.18. Trading volumes declined before the May Day holiday, but technical indicators pointed upwards.

Imported copper flowed into China’s spot market when the SHFE/LME copper price ratio was relatively high last week, with more brands available for trading. Selling interest improved among traders by the end of the month, and the resultant growth in copper supply narrowed spot premiums.

SMM prediction is that SHFE copper may trade at RMB 43,200-44,200/mt this week.