SHANGHAI, Sept. 23 (SMM) – SHFE 1511 copper started at RMB 40,430/mt for night trading Monday and edged up to RMB 40,480/mt. Later, the red metal dived to RMB 40,240/mt after meeting resistance at moving averages, to end at RMB 40,270/mt, up by RMB 120/mt. Positions grew 1,792 with trading volumes around 160,000 lots.
SHFE copper prices dropped after the open of Tuesday trading session with shorts gathering strength. The contract rebounded from RMB 40,000/mt due to growing long positions. Near session’ end, Chinese IF stock index retreated earlier gains and this triggered exit of longs in commodity market. As such, SHFE copper ended at a session low of RMB 39,920/mt, down by RMB 230/mt or 0.57%. Positions grew 5,598 to 190,326 with trading volumes down 220,000 lots.
On Tuesday, spot copper was offered between discounts of RMB 70/mt and premiums of RMB 10/mt in Shanghai. Mainstream prices were RMB 40,090-40,170/mt for standard-quality copper, versus RMB 40,120-40,230/mt for high-quality copper.
SHFE copper fell back after meeting resistance on Tuesday. Cargo holders rush to sell, driving up spot supply. This left wide room open for price negotiation. SHFE 1510 and 1511 price gap stayed above RMB 20/mt. Thus, traders went for bargain hunting. Downstream producers entered market following a fall in SHFE copper prices. Transactions gradually picked up.