SHANGHAI, Jul. 15 (SMM) – SHFE 1509 copper opened higher at RMB 40,480/mt Monday night and finally closed up RMB 320/mt or 0.8% at RMB 40,500/mt with the high-end price at RMB 40,590/mt and low-end price at RMB 40,290/mt. Trading volumes came in at 170,000 lots with positions down 3,272.
The most trading contract tested RMB 40,600/mt during Tuesday trading session and later touched a low of RMB 40,250/mt, to end at RMB 40,250/mt, rising RMB 100/mt or 0.25%. Trading volumes fell 82,706 lots and positions dropped 7,628.
On Tuesday, spot copper was traded RMB 0-100/mt lower than SHFE 1507 copper. Standard-quality copper quoted RMB 41,080-41,220/mt, versus RMB 41,120 -41,280/mt for high-quality copper.
Price spread still stayed around RMB 400/mt between SHFE 1507 and 1508 copper. Cargo holders rushed to sell and lowered their price offers. Consequently, spot copper turned to discounts. Speculators planned to purchase cheaper copper for term contracts. Nonetheless, downstream buyers remained quiet. Oversupply pressures grew with poor consumption. Trades were still anemic.