SHANGHAI, May 22 (SMM) – SHFE 1507 copper contract prices gapped lower at RMB 44,820/mt for night session Wednesday, and fell to RMB 44,700/mt before closing the session at RMB 44,820/mt, down by RMB 130/mt, with the session high at only RMB 44,990/mt.
The July-delivery SHFE copper fluctuated up Thursday morning with rallying stock prices and hit RMB 45,220/mt after midday. The prices ended daytime trading at RMB 45,120/mt, up RMB 170/mt. SHFE 1507 copper contract positions declined 20,022, and trading volumes decreased 163,000 lots.
Spot copper was still offered at premiums of RMB 60-120/mt to SHFE 1506 copper contract in Shanghai Thursday morning. Standard-quality copper traded at RMB 45,160-45,240/mt, and high-quality copper sold for RMB 45,190-45,280/mt. Spot premiums narrowed further to RMB 50-90/mt in the afternoon.
Oversupply pressure in copper market grew with a large number of deliverable goods entering the market and cargo holders selling actively for cash. Spot premiums narrowed as a result. Downstream buyers only watched from the sidelines and stagnant distant-month contract prices on SHFE left few opportunities for intermediaries. Thus, trading activities declined.