SMM Copper Market Daily Review (2015-9-24)

SHANGHAI, Sept. 25 (SMM) – SHFE 1511 copper touched a high of RMB 39,180/mt after starting Wednesday evening session at RMB 38,950/mt. Later the contract fell back due to slumping crude oil prices before ending at RMB 38,650/mt, down by RMB 10/mt or 0.03%. Positions dropped 3,924 with trading volumes around 290,000 lots.

SHFE copper drifted higher to RMB 38,800/mt on Thursday and met resistance at RMB 38,870/mt, to close at RMB 38,850/mt, up RMB 190/mt or 0.49%. Positions fell 4,342 to 186,212 and trading volumes were around 560,000 lots. Positions for SHFE 1512 copper totaled 185,404.

Expectation for traditional peak season and supply cut is gradually weakened by China’s poor PMI data. Investors will exit market for safety before China’s week-long National Day holiday. However, pre-holiday stocking by downstream buyers and purchase at lows by investors should lend support to copper prices.

On Thursday, spot copper quoted RMB 0-60/mt above SHFE front-month contract in Shanghai. Traded prices were RMB 38,860-39,000/mt for standard-quality copper and RMB 38,880-39,040/mt for high-quality copper.

SHFE copper posted modest growth on Thursday and market supply stayed stable. Standard-quality copper prices held firm, leaving limited room for speculation. Downstream buyers purchased for immediate consumption with transactions below Wednesday.