SHANGHAI, Sept. 17 (SMM) – SHFE 1511 copper opened slightly lower at RMB 40,390/mt during Tuesday evening session and then drifted higher to RMB 40,770/mt responding to LME copper and crude oil prices. The contract ended RMB 210/mt higher at RMB 40,720/mt. Positions increased 2,996 to 203,996 with trading volumes around 260,000 lots.
Chinese stocks once slid below 3,000 on Wednesday, inverting SHFE copper to losses. But later crude oil, black and nonferrous metal prices all rebounded in response a rally in Chinese stock market. As such, SHFE copper increased above the 5-day moving average before closing at a high of RMB 40,950/mt, up by RMB 440/mt or 1.09%. Positions decreased 960 to 200,040 and trading volumes were around 550,000 lots.
On Wednesday, spot copper traded RMB 20-70/mt above SHFE 1510 contract in Shanghai. Standard-quality copper settled at RMB 40,620-40,720/mt, versus RMB 40,640 -40,740/mt for high-quality copper.
SHFE copper fell back from highs today. Wait-and-see sentiment loomed market after the delivery for SHFE 1509 copper. Cargo holders refused to sell at lows and tried to step up spot premiums. Traders went bargain hunting while downstream producers bought as needed. Trading activity was thus softening.