SHANGHAI, Oct. 10 (SMM) – SHFE 1512 copper opened lower at RMB 38,890/mt for night trading Thursday and then drifted lower to RMB 38,630/mt due to growing shorts. But later the contract regained most losses and touched RMB 39,100/mt, to end at RMB 39,020/mt, down by RMB 140/mt or 0.36%. Positions grew 3,000 to 250,616 with trading volumes around 130,000 lots.
SHFE copper increased above the 20-day moving average after starting Friday trading session responding to Glencore’s zinc output cut news. The red metal broke above RMB 40,000/mt in the afternoon business and once challenged RMB 40,270/mt before closing at RMB 40,090/mt, gaining RMB 930/mt or 2.37%. Positions fell 29,310 to 218,306 and trading volumes were around 60,000 lots.
In Shanghai, spot copper quoted RMB 0-70/mt below SHFE 1510 copper on Friday, versus RMB 39,400-39,930/mt for standard-quality copper and RMB 39,440-39,980/mt for high-quality copper.
SHFE copper returned to gains today. Cargo holders rushed to sell in the morning, depressing high-quality copper into discounts of RMB 0-50/mt. In the afternoon business, SHFE copper grew RMB 500/mt and spot copper prices rose to RMB 40,000/mt. Consequently, traders were unwilling to ship hedged goods to market. Besides, SHFE 1510 and 1511 copper spread narrowed to RMB 10-70/mt. Trading activities turned softening while downstream buyers watched from the sidelines.