SHANGHAI, May 21 (SMM) – SHFE 1507 copper contract prices gapped lower at RMB 45,320/mt for night session Tuesday, and dropped to RMB 44,710/mt before closing the session at RMB 44,810/mt, down by RMB 1,000/mt.
The most active SHFE copper contract hovered near RMB 44,950/mt early Wednesday and dipped to a low RMB 44,610/mt in the afternoon before ending at RMB 44,760/mt, down RMB 1,050/mt. SHFE 1507 copper contract positions declined 12,882, and trading volumes grew 15,100 lots. Positions of SHFE 1508 copper contract rose 18,712.
Spot copper was still offered at premiums of RMB 70-130/mt to SHFE 1506 copper contract in Shanghai Wednesday morning. Standard-quality copper traded at RMB 45,060-45,140/mt, and high-quality copper sold for RMB 45,100-45,180/mt. Traded prices fell to RMB 44,880-45,080/mt in the afternoon.
Hedged goods entered the market after SHFE copper slumped, fueling oversupply pressure and causing cargo holders to cut premiums. However, hydro-copper prices held firm against tight supply. Some traders sold futures and bought in spot markets. Downstream buyers were bearish toward copper prices and rarely entered the market.