SHANGHAI, Sept. 21 (SMM) – SHFE 1511 copper started Thursday evening session at RMB 40,940/mt and then drifted higher to RMB 41,200/mt. Later, the red metal struggled around RMB 41,100/mt and fell back near session’s end, to close at RMB 41,050/mt, down by RMB 10/mt. Positions edged down 930 to 195,000 with trading volumes around 200,000 lots.
US Fed announced to keep interest rate unchanged on the Sept.’s FOMC meeting overnight. US dollar thus ended down 1%. But COMEX copper finally still slipped from highs despite the sliding dollar. The earthquake in Chile gave no solid support to copper prices.
In response, SHFE copper fell back to the 5-day moving average after the open of Friday trading session but was still above RMB 40,700/mt. Then the contract dived to RMB 40,670/mt before ending at RMB 40,710/mt, down RMB 350/mt or 0.85%. Positions declined 584 to 195,032 and trading volumes were around 500,000 lots. Spot copper traded between discounts of RMB 10/mt and premiums of RMB 60/mt in Shanghai on Friday. Standard-quality copper quoted at RMB 40,800-40,900/mt and RMB 40,840-40,940/mt for high-quality copper.
SHFE copper expanded losses. Cargo holders rushed to sell, sending down spot premiums. Traders held a wait-and-see attitude with some trades made at lows. Downstream buyers purchased as needed. Transactions were less than Thursday.