SMM Copper Market Daily Review (2015-11-13)

SHANGHAI, Nov. 16 (SMM) – SHFE 1601 copper gapped lower at RMB 36,860/mt for night trading Thursday in response to LME copper and moved lower to RMB 36,310/mt before closing at RMB 36,560/mt, down by RMB 760/mt or 2.04%. Trading volumes surged to 510,000 lots and positions increased 3,964. And the SHFE/LME copper price ratio slipped to 7.3.

SHFE copper moved lower to RMB 36,170/mt due to sell-offs and moved below moving average all the day, to close the day at RMB 36,230/mt, down by RMB 1,090/mt or 2.92%. Trading volumes of SHFE 1601 copper surged 410,000 lots and positions jumped 21,984. SHFE 1602 copper saw positions up 23,198.

On Friday, spot copper traded RMB 10-110/mt above SHFE 1511 copper in Shanghai. Traded prices were RMB 36,450-36,600/mt for high-quality copper and RMB 36,470-36,650/mt for high-quality copper.

SHFE copper tumbled and hedged goods flowed into market. Price gap between SHFE 1511 and 1512 copper widened to RMB 100/mt, leading to price offers between discounts of RMB 20/mt and premiums of RMB 30/mt. But spot copper premiums fell back with price gap between SHFE 1511 and 1512 copper narrowing. Brands were various and spot supply was sufficient. Traders were unwilling to buy goods due to the large price gap. Downstream buyers watched from the sidelines. Bearishness grew in market and transactions were weak.