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Tags: SHFE copper prices,  SHFE aluminum prices,  aluminium sheet,  SHFE zinc prices,  Shanghai tin prices,  Shanghai nickel prices

SHANGHAI, Aug. 5 (SMM) – Copper The most active SHFE 1410 copper contract started last Friday’s night session at RMB 50,410/mt, meeting resistance at RMB 50,500/mt, and closed down RMB 180/mt at RMB 50,250/mt. During the night session, trading volumes for the most active contract were around 70,000 lots, and positions were up by 2,836 lots. On Monday, SHFE copper prices followed LME copper prices down to RMB 50,070/mt, but recouped some losses at the tail of the trading to end down RMB 210/mt, or 0.42%, at RMB 50,220/mt. Trading volumes for the SHFE 1410 copper contract gained by 24,256 lots, and positions added by 6,194 lots. In the Shanghai physical market, copper was offered Monday at a RMB 0-80/mt discount over the SHFE 1408 copper contract. Traded prices were RMB 50,520-50,620/mt for standard-quality copper and RMB 50,560-50,680/mt for high-quality copper. A slight rebound in SHFE copper prices gave cargo holders incentives to move goods at highs and quote prices at a premium. Nevertheless, the improving Shanghai/LME lead price ratio allowed a large quantity of imported copper to flow in the market, adding to pressure from growing supply. As a result, high-quality copper was sold at a lower premium, and overall copper traded at a discount by the midday due to oversupply. Meanwhile, downstream producers expressed limited buying interest in the first trading day of the week. As SHFE copper prices fell further during the afternoon trading session, some middlemen entered the market to buy low-priced goods to satisfy demand from orders under long-term contract. Imported copper decreased after the SHFE/LME copper price ratio fell back, helping reduce pressure from rising supply. Physical copper was sold slightly lower at RMB 50,430-50,550/mt on Monday. 17% of industry insiders polled by SMM predict copper prices will rebound this week. The US Commodity Futures Trading Commission continued to report net long positions in Comex copper for the week ending July 29. As for fundamentals, LME copper stocks fell to 146,000 mt as of August 4, and the cash-to-three-month backwardation in LME copper held large at USD 22/mt, lending support to copper prices. In addition, the Shanghai Composite Index rallied with the government’s mild stimulus producing results, which shored up market confidence and is expected to boost futures trading. Thus, some players expect LME copper to stand above USD 7,120/mt and SHFE 1410 copper contract to rise above RMB 50,500/mt. 58% of industry participants believe LME copper prices will remain between USD 7,050-7,120/mt. The US stock prices slumped last week due to mainly to risk events, such as the Argentina default, and showed no sign of rebounding. This, plus uncertainties surrounding the US economic figures due out this week, will limit moving range for copper prices. Timing for the Fed’s first interest rate hike garnered much attention after the employment data were released last week, and the US dollar index pulled back after rising to 81. But copper prices took limited support therefrom. In physical markets, supply of imported copper increased after the SHFE/LME copper price ratio improved Monday. Goods holders still quoted high, but consumption was soft in offseason. The see-saw battle between sellers and buyers will leave copper prices stable. Still, 25% of market players are bearish, expecting LME copper to slip below USD 7,040/mt and SHFE copper to fall below RMB 50,000/mt. These players based their opinions on negative technical indicators and weak demand. Aluminum Last Friday night, SHFE 1410 aluminum contract slipped to RMB 13,970/mt after starting at RMB 14,000/mt, and finished the night session at RMB 14,005/mt. Trading volumes totaled 60,200 lots, with positions up 1,374 lots to 159,306 lots. On Monday, the most active contract inched lower before ending at RMB 13,985/mt. Trading volumes totaled 40,790 lots, with positions down 6 lots to 159,300 lots.

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