SHANGHAI, Aug. 28 (SMM) – SHFE 1511 copper opened lower at RMB 38,500/mt in response to falling LME copper on Wednesday night. The contract then advanced to RMB 38,600/mt but later drifted lower to RMB 38,090/mt due to stronger dollar and sell-offs. The red metal finished down RMB 780/mt or 2.00% at RMB 38,290/mt. Positions declined 5,794 and trading volumes were about 120,000 lots.
Crude oil prices headed for stability and US dollar moved on the weak side on Thursday. Hence, SHFE 1511 copper opened RMB 200/mt higher at RMB 38,160/mt and then reached RMB 38,870/mt as China’s A-shares opened 2% higher Thursday. The contract closed the day at RMB 38,740/mt, slipping RMB 330/mt or 0.84%. Positions declined 116 and trading volumes totaled 270,000 lots, falling 10,000 lots.
On Thursday, spot copper traded at discounts of RMB 20-80/mt over SHFE 1509 copper in Shanghai market. Standard-quality copper quoted RMB 38,800- 39,000/mt and RMB 38,840 -39,060/mt for high-quality copper.
SHFE copper fell back following a rally. Less producers entered market late this month. Some hedged copper flowed into market and thus spot copper was throwed into discounts. Some buyers went bargain hunting then. Standard-quality quoted the same with high-quality copper while hydro-cooper prices held firm. Downstream buyers purchased to need.