SHANGHAI, Nov. 6 (SMM) – SHFE 1601 copper started Wednesday night session at RMB 38,680/mt and moved higher to RMB 39,110/mt. Later, the contract dived to RMB 38,440/mt and ended at RMB 38,590/mt, up RMB 60/mt or 0.16%. Positions decreased 6,490 and trading volumes jumped to 250,000 lots.
Base metal prices did not get a boost from Chinese stock market on Thursday and SHFE 1601 copper fell back gradually. The red metal finally closed at an intro-day low of RMB 38,220/mt, down by RMB 310/mt or 0.80%. Positions jumped 28,344 to 296,380 and trading volumes were around 515,000 lots.
Spot copper was offered at discounts of RMB 30-80/mt in Shanghai on Thursday, versus RMB 38,480-38,660/mt for standard-quality copper and RMB 38,500 -38,690/mt for high-quality copper.
Spot discounts on high-quality copper expanded first but standard-quality copper prices held firm. Mainstream prices were at discounts of RMB 40-80/mt. In the afternoon business, traders hunted for cheaper goods with ample spot supply and transactions picked up gradually. Downstream buyers purchased as needed. Trading activities are expected to be pushed by expanded discounts.