Author：Site  Source：Original Site  Click to rate：1131  Post time：2014-05-13

Tags: SHFE copper, aluminum sheet ,  lead prices,  zinc prices,  tin prices

SHANGHAI, May. 13 (SMM) – Copper The most active SHFE copper contract started last Friday’s night session at RMB 47,160/mt, and then tracked LME copper prices up to RMB 47,450/mt. Prices for the contract stabilized around RMB 47,300/mt subsequently after encountering upward resistance, and closed up RMB 260/mt at RMB 47,340/mt. Traded volumes totaled some 130,000 lots, while positions gained 664 lots. On Monday, SHFE copper prices advanced further near to the RMB 48,000/mt mark, and finished up RMB 930/mt, or 1.98%, at RMB 48,010/mt. The SHFE 1407 copper contract crept to a high of RMB 48,500/mt, and ended up RMB 930/mt, or 2.11%, at RMB 48,470/mt. Traded volumes for the SHFE 1408 copper contract totaled 142,000 lots, and positions added 6,790 lots. Traded volumes and positions for the SHFE 1407 copper contract expanded 60,764 and 9,388 lots, respectively. In the Shanghai physical market, copper was offered Monday at a premium of RMB 250-550/mt over the SHFE 1405 copper contract. Traded prices were RMB 50,150-50,380/mt for standard-quality copper and RMB 50,200-50,450/mt for high-quality copper. After SHFE copper prices staged a sharp rebound, cargo holders intended to push physical premiums up to RMB 450-550/mt seen last Friday in the morning trading. Trading activity, however, weakened sharply after spot copper prices rose above RMB 50,000/mt. In addition, an around RMB 500/mt rally in SHFE copper prices as well as a RMB 1,000/mt price gap between the SHFE 1405 and 1406 copper contracts gave cargo holders incentives to raise cash at lower premiums. As a result, copper premiums slid nearly RMB 200/mt, with loose supply in the market. Rising SHFE copper prices deterred hedged supply from flowing in the market, while a small number of middlemen jumped in. Downstream producers were largely on the sidelines since they regarded spot prices above RMB 50,000/mt as too high, and traded volumes were rather light Monday. SHFE copper prices continued to hover at high levels during the afternoon trading session, while the price gap between the SHFE 1405 and 1406 copper contracts also held firm at around RMB 1,000/mt. In this context, cargo holders ramped up deliveries to raise cash at lower premiums, with a variety of brands and ample supply available in the market. Physical premiums initially were quoted at RMB 200-360/mt, but fell to RMB 150-250/mt near the tail of the trading, with hydro-copper offered as low as a premium of RMB 100/mt. Copper traded largely between RMB 50,250-50,400/mt in light volumes as investors sold at high prices. The most recent SMM survey showed that most industry insiders were optimistic about this week’s copper prices, with 71% of respondents expecting LME copper prices to stand above USD 6,780/mt to challenge USD 6,900/mt and SHFE copper to test RMB 48,500/mt. Market expectations for US housing and retail sales data due for release this week were positive, which will shore up market morale and boost US stock prices. Technically, both LME and SHFE copper prices climbed above major short-term moving averages with support at lower levels enhanced. As for market fundamentals, LME and SHFE copper stocks continued to fall, with inventories available at LME registered warehouses down to the lowest since October 2008. The cash-to-three-month backwardation in LME copper rose to USD 45/mt. Tax-paid copper stocks at SHFE approved warehouses were only 24,141 mt. The price gap between SHFE 1405 and 1406 copper contracts has widened to RMB 1,200/mt, while positions for the May-delivery copper held up at about 25,000 lots. In this context, market players expected another round of short squeeze in the SHFE 1405 copper contract with the delivery date approaching, which may fuel further rebound in the prices. The remaining 29% of industry participants were cautious, predicting that LME copper prices will hold steady at USD 6,700-6,780/mt and SHFE copper prices will remain in the RMB 47,200-47,800/mt range. These investors based their opinions partly on the rebounding US dollar index powered by anticipation for a potential ECB rate cut which depressed the euro.

from metal.com