SHANGHAI, Jul. 27 (SMM) – Last Friday, SHFE copper dipped to RMB 37,640/mt and then moved around RMB 37,900/mt. Later, the contract tested RMB 38,200/mt and fell to RMB 37,600/mt in response to the drop in China stock market, to close at RMB 37,760/mt, down RMB 1,130/mt. Trading volumes rose 109,000 lots with positions of 46,610. Total trading volumes of SHFE copper grew 283,000 and positions increased 77,714.
SHFE reported a 7,750 mt decline in copper inventories last week to 101,251 mt.
More speculators entered spot market last Friday. In Shanghai, downstream buyers actively built stocks before weekend when copper prices fell below RMB 39,000/mt, driving supply down in market and pushing spot premiums up. SHFE copper rallied over RMB 200/mt from low near noon and trades were thus limited slightly. As a whole, downstream buyers contributed much to active trades.
Spot copper were offered RMB 350-410/mt higher than SHFE 1508 copper July 24 in Shanghai. Traded prices were RMB 38,850-39,150/mt for standard-quality copper and RMB 38,880-39,200/mt for high-quality copper.