SHANGHAI, Oct. 26 (SMM) – On Tuesday’s night trading, SHFE 1612 copper started higher at RMB 38,110/mt and advanced to RMB 38,250/mt. The contract dipped to RMB 37,820/mt and rallied at the tail of trading before ending at RMB 37,960/mt. Positions reduced 8,118 to 176,000 and trading volumes fell 232,000 to 123,000 lots.

On Wednesday, SHFE 1612 copper opened at RMB 37,950/mt and advanced to RMB 38,020/mt with positions closing by shorts. Ferrous metals dropped across the board, including rebar and thermal coal. SHFE 1612 copper declined to RMB 37,700/mt, hurt by exit of longs. During the afternoon trading, SHFE 1612 copper stabilized at lows due to leaving of longs and finally closed at RMB 37,760/mt. Positions reduced 18,990 to 165,000 and trading volumes fell 126,000 to 229,000 lots. Positions of all SHFE copper contracts dropped 20,284 to 455,338 with trading volumes down 206,000 to 474,000 lots. To sum up, SHFE 1612 copper dropped technically due to positions closing by longs.

SHFE 1612 copper is predicted to fluctuate at RMB 37,600-37,950/mt on Wednesday’s night trading and eyes should be on support at the 20-day moving average.