SHANGHAI, Sept. 9 (SMM) – LME copper slid from highs overnight and this allowed SHFE copper to open higher but move at lows. SHFE 1511 copper started at RMB 39,520/mt for night trading Monday but then suffered selling pressures to drop slightly before ending at RMB 39,340/mt, up by RMB 80/mt or 0.2%. Positions increased 3,762 to 217,640 and trading volumes were less than 100,000 lots.

Chinese stock market headed for stability on Tuesday and thus SHFE copper opened slightly higher. But with the negative reading of China’s import and export data for  August and a drop in Chinese stock market, SHFE copper refreshed a new low at RMB 39,210/mt. However, the red metal followed Chinese stock market to rally later before ending at an intra-day high of RMB 39,530/mt, gaining RMB 270/mt or 0.69%. Positions saw a rise of 7,608 to 221,486 and trading volumes increased 134,000 lots.

In Shanghai market, spot copper settled at discounts of RMB 20-100/mt against SHFE front-month contract on Tuesday. Mainstream traded prices were RMB 39,460-39,560/mt for standard-quality copper, versus RMB 39,480- 39,600/mt for high-quality copper.

SHFE copper failed to rally with resistance emerging. Cargo holders were active in selling at highs and thus cut their offers, widening spot discounts. High-quality copper prices dropped quickly, leaving no price gap between it and standard-quality copper. Speculative traders did not enter market on the back of narrowing price gap between SHFE 1509 and 1510 copper. On the other hand, downstream buyers watched from the sidelines. Transactions were below Monday and oversupply pressures grew further.