SHANGHAI, Jul. 29 (SMM) – SHFE 1510 copper contract opened lower at RMB 37,680/mt for night trading Monday and hit a low of RMB 37,440/mt. The price then drifted higher to RMB 37,980/mt and closed at RMB 37,820/mt, off by RMB 330/mt or 0.87%.

October copper on the SHFE moved around RMB 38,000/mt during morning session Tuesday and in the afternoon the contract shrank to RMB 37,900/mt before closing at RMB 38,040/mt, slipping RMB 110/mt, off 0.29%. Trading volumes dropped 21,296 lots with positions up 6,468.

High copper/LME copper price ratio allowed more imported copper to enter Chinese market, sending spot supply up. As such, cargo holders rushed to lower spot premiums to sell. Slipping premiums left little room for speculative operations. Meanwhile, downstream producers purchased for immediate requirements. Spot availability increased further in market while trades were left soft.

In Shanghai market, spot copper quoted at a premium of RMB 200-350/mt to SHFE 1508 copper early Tuesday, and the premiums narrowed to RMB 180-330/mt. Mainstream prices were RMB 38,800-38,940/mt for standard-quality copper and RMB 38,850 -39,040/mt for high-quality copper.