SHANGHAI, Oct. 14 (SMM) – SHFE 1512 copper started at RMB 40,180/mt during Monday evening session and then retreated to the 20-day moving average, tracing LME copper. Then the red metal stabilized around RMB 39,900/mt and closed at RMB 39,910/mt, down by MRB 170/mt or 0.42%. Positions declined 394 to 226,416 and trading volumes were around 140,000 lots. 

Chinese stock market gapped lower on Tuesday, which allowed SHFE 1512 copper to fall below the 20-day moving average after starting Tuesday trading session. SHFE copper then found support at RMB 39,510/mt. The unwrought copper and copper semis imports hit a new high this year, domestic latest import data showed. Those factors, together with Chinese stock rally, to support SHFE copper to rebound and finally the red metal closed down RMB 330/mt or 0.82% at RMB 39,750/mt. Positions saw a rise of 4,946 to 231,756 with trading volumes totaling 410,000 lots.

On Tuesday, spot copper largely traded at discounts of RMB 50/mt and premiums of RMB 20/mt in Shanghai market. Standard-quality copper quoted RMB 39,620-39,720/mt and RMB 39,640-39,780/mt for high-quality copper.

Prices offers by traders were unchanged at discounts of RMB 10-50/mt from Monday on Tuesday morning. In the afternoon business, SHFE 1510 and 1511 copper spread narrowed and some traders entered market for high-quality copper. This helped high-quality copper return to premiums. Transactions among traders continued to increase but downstream buyers watched from the sideline.