SMM Copper Market Daily Review (2015-10-27)

SHANGHAI, Oct. 28 (SMM) – SHFE 1512 copper opened Monday evening session at RMB 39,120/mt and drifted lower to RMB 38,990/mt and moved around RMB 39,050/mt before closing down RMB 80/mt or 0.20% at RMB 39,040/mt.

SHFE copper touched a low of RMB 38,800/mt during Tuesday trading session in response to slump in Chinese stock market. Nonetheless, the red metal rebounded thanks to Chinese stock rally, to end at RMB 39,310/mt, up RMB 190/mt or 0.49%. Positions declined 466 and trading volumes were around 510,000 lots. In Shanghai, spot copper traded between discounts of RMB 50/mt and premiums of RMB 50/mt on Tuesday, versus RMB 38,900-39,120/mt for standard-quality copper and RMB 38,930-39,150/mt for high-quality copper.

Traders still intended to hold prices firm and mainly quoted between discounts of RMB 40/mt and premiums of RMB 50/mt in the morning. But amply supply and poor demand drove down spot prices soon. In the afternoon business, SHFE copper grew to RMB 39,150/mt, curbing trading activities. Spot premiums on high-quality copper inverted to zero. Downstream buyers watched from the sidelines and overall transactions were left muted.