SMM Copper Market Daily Review (2015-6-12)

SHANGHAI, Jun. 15 (SMM) – SHFE 1508 copper contract was still under resistance from RMB 42,850/mt last Friday and fell rapidly at the tail of trading to touch a low of RMB 42,480/mt before ending at RMB 42,490/mt, posting a RMB 1,070/mt decline. Trading volumes grew 113,000 lots and positions were up 16,300.Total SHFE copper positions surged 28,024. SHFE copper prices suffered growing selling pressure.

SHFE copper inventories fell by 10,567 mt to 134,816 mt last week. Shipments to warehouses declined as several smelters started maintenance.

Spot copper quoted at premiums of RMB 0-60/mt to SHFE 1506 copper contract early Friday. Traded prices were RMB 42,960-43,050/mt for standard-quality copper and RMB 42,990-43,080/mt for high-quality copper. Premiums on a few high-quality products fell to only RMB 20/mt in the afternoon due to high supply.

The influx of hedged goods following SHFE copper declines and wider spread between SHFE 1506 and 1507 copper contracts enlivened spot trades in the morning. But spot premiums narrowed quickly due to growing supply. Hydro-copper was offered at discounts. Downstream buyers sourced goods when prices neared RMB 42,000/mt, but trading turned lighter in the afternoon.