SHANGHAI, Sept. 8 (SMM) – On Wednesday’s night trading, SHFE 1611 copper opened at RMB 36,750/mt and advanced to RMB 36,850/mt with positions opening by longs. The contract dived to RMB 36,530/mt, hurt by entering of shorts, and fell below the 5-day moving average before rebounding. SHFE 1611 copper finally ended at RMB 36,620/mt, down RMB 40/mt with positions up 2,570.
On Thursday, SHFE 1611 copper started at RMB 36,640/mt and climbed to above moving average, thanks to positions opening by longs. The contract dropped after touching the 20-week moving average with positions closing by longs. During the afternoon business, China’s falling imported copper in August raised worries on domestic demand. Thus, SHFE 1611 copper slid to RMB 36,550/mt and closed at RMB 36,570/mt, down RMB 90/mt with positions down 280. Positions of all SHFE copper contracts reduced 5,096 to 500,000 with trading volumes at 280,000 lots. SHFE 1611 copper soared at first but then dropped with resistance at RMB 36,750/mt.
SHFE 1611 copper should remain facing downward pressure in peak season due to China’s soft import data.