SMM Copper Market Daily Review (2015-6-24)

SHANGHAI, Jun. 25 (SMM) – The most active SHFE copper contract opened at RMB 41,890/mt Tuesday night and grew rapidly to RMB 42,150/mt before ending the session at RMB 42,020/mt, up RMB 160/mt.

SHFE 1508 copper contract prices managed to hold above RMB 41,900/mt and touched RMB 42,290/mt before ending the daytime trading at RMB 42,190/mt, up RMB 330/mt. Positions of the most active copper contract fell by 11,464, while SHFE 1509 copper contract positions increased 18,922. The August-delivery copper is still under resistance from 10-day moving average.

Spot copper was offered RMB 210-260/mt higher than SHFE 1507 copper contract on Wednesday. Deals were made at RMB 42,300-42,400/mt for standard-quality copper and RMB 42,330-42,440/mt for high-quality copper. Traded prices edged higher to RMB 42,380-42,500/mt in the afternoon.

Cargo holders tried to hike spot premiums in the morning, but copper hunters did not accept the hike. As such, some traders lowered their offers and some speculators thus sourced goods at low, limiting the room for a drop in spot premiums. Standard-quality copper quoted at high with shortfalls in hydro-copper. As a whole, trades declined today.