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

SHANGHAI, Dec. 23 (SMM) – Copper Copper for March delivery on the Shanghai Futures Exchange, the most active contract, swung by less than RMB 200/mt after starting last Friday’s night session at RMB 45,750/mt and ended up RMB 340/mt at RMB 45,670/mt. During the night session, trading volumes for the SHFE 1503 copper contract decreased slightly to some 80,000 lots, while positions increased 5,322. SHFE copper initially rallied to RMB 45,980/mt, facing resistance at RMB 46,000/mt, and finished up RMB 630/mt, or 1.39%, at RMB 45,960/mt. Trading volumes for the most active contract shrank 41,162 lots, while positions increased 13,018. Total trading volumes shed 97,684 lots, and total positions decreased 10,902 lots. Spot copper in Shanghai was quoted Monday at a RMB 0-120/mt premium to the SHFE 1501 copper contract. Standard- and high-quality copper sold for RMB 46,600-46,760/mt and RMB 46,640 -46,820/mt, respectively. Most market participants entered the year-end settlement process, while some cargo holders still rushed to convert inventories into cash via cutting premiums. Spot copper was quoted at a RMB 60-120/mt premium in the morning trading. Premiums diverged further by the midday after SHFE copper surged RMB 200/mt. Cargo holders that are anxious to sell lowered quotations for standard-quality copper close to par with the front-month copper contract. Hydro-copper was quoted nearly at a discount, while high-quality copper was quoted at a RMB 80/mt premium. Downstream producers bought mostly as needed on Monday. Spot copper was quoted between a RMB 90/mt discount and a RMB 20/mt premium and traded at RMB 46,650-46,780/mt in the afternoon trading. Opinions on this week’s copper price outlook are divided among industry insiders, SMM’s latest survey indicates that 29% of the surveyed expect a rally in copper prices, pointing out that markets are now optimistic about economic releases from the US, and the resultant increase across US stock market will benefit base metals. Moreover, crude oil and the ruble have stabilized, easing market fears. In China, the Shanghai Composite Index is likely to rise further, and market interest rates are on the way down – a sign of loose liquidity conditions. Meanwhile, China’s reforms are yielding results, which will also proffer impetus to commodity market. As such, nearly one third of industry participants expect LME copper to test resistance at USD 6,450/mt and SHFE copper to rise to RMB 46,500/mt. More of these respondents, or 59%, believe LME copper will stay at USD 6,370-6,430/mt, and SHFE copper will remain in the RMB 45,500-46,000/mt range this week. These player hold that the simultaneous rise in the US dollar index and US stock prices will leave copper prices in a narrow range. Furthermore, trading on the LME will be suspended Thursday for Christmas, and many investors overseas will leave the market before the Christmas. The resulting decline in transactions will leave prices directionless. Technically, LME copper has been trapped between the 5-day and 20-day moving averages, which also points to consolidation in the near term.

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