SMM Copper Market Daily Review (2015-4-10)

SHANGHAI, Apr. 13 (SMM) – SHFE 1506 copper contract opened higher at RMB 43,380/mt Thursday evening, and rose to RMB 43,450/mt before falling back to RMB 43,180/mt due to a stronger dollar. The prices closed the session up RMB 20/mt at RMB 43,300/mt. Positions grew 1,352 and trading volumes were only 100,000 lots. The anticipation for an upturn in copper consumption seemed to have failed to materialize thus far. But high premiums in spot market kept prices from falling sharply.

The most active SHFE copper contract extended the strong momentum and touched RMB 43,600/mt on Friday, and closed at RMB 43,530/mt, up RMB 250/mt. Positions in the most active contract declined 3,636, and trading volumes fell 3,328 lots. Positions in SHFE 1507 copper contract grew 5,438 with trading volumes also up 10,406 lots. SHFE reported a 5,881 mt decline in copper stocks to 240,775 mt last week, a reflection that downstream buyers started buying when copper prices fell.

Spot premiums in Shanghai copper market continued to expand Friday to RMB 60-100/mt to SHFE 1504 copper contract. Prices are RMB 43,550-43,610/mt for standard-quality copper and RMB 43,570-43,650/mt for high-quality copper. Traded prices increased to RMB 43,600-43,700/mt in the afternoon.

Cargo holders were unwilling to sell at lows, and some cheaper goods were soon purchased by traders. Price offers for standard-quality copper increased, helping lift prices of high-quality copper. However, transactions turned quiet after premiums for high-quality copper touched RMB 100/mt. Downstream buyers only purchased as needed.