SHANGHAI, Nov. 20 (SMM) –SHFE 1601 copper started at RMB 34,840/mt during Wednesday night session and closed the session down RMB 250/mt or 0.72% at RMB 34,670/mt. Positions declined 3,874 to 324,470 and trading volumes were around 334,400 lots.
The January-delivery copper on the SHFE dived to RMB 34,210/mt on Thursday and then bounced back in response to Chinese stock market and exit of shorts, to end at RMB 34,770/mt, down by RMB 150/mt or 0.43%. Positions declined 5,296 with trading volumes around 840,000 lots. Positions opened by longs were higher than shorts for the first time for SHFE 1603 contract.
In Shanghai market, spot copper quoted between discounts of RMB 50/mt and premiums of RMB 10/mt over SHFE 1512 copper on Thursday, versus RMB 34,420-34,800/mt for standard-quality copper and RMB 34,440 -34,850/mt for high-quality copper.
Delivered goods flowed into market and spot supply stayed ample. Some traders bought in spot market and sold on the SHFE market. Cargo holders hesitated to give price offers and bearishness loomed market. Downstream buyers went for bargain hunting despite purchase cut.