SMM Brief on SHFE Copper Prices on Sept. 5

SHANGHAI, Sept. 5 (SMM) –SHFE 1111 copper contract prices, the most active one, opened down RMB 260/mt at RMB 67,650/mt on Monday, with prices moving downward after a low open. After the opening, SHFE three-month copper contract prices met resistance when trying to move towards RMB 68,000/mt, and reached a high at RMB 68,030/mt. Later, as Chinese stock markets slid by nearly 2% at the opening, and since LME copper prices lost USD 9,000/mt, SHFE three-month copper contract prices moved lower, and touched a low RMB 67,080/mt in the afternoon session. Finally, SHFE 1111 copper contract prices closed at RMB 67,100/mt, down RMB 810/mt, or a loss of 1.19%. Positions for SHFE 1111 copper contracts were up 2,002 lots, and trading volumes were up 16,444 lots. Short investors actively built new positions at high prices. From technical indicators, SHFE three-month copper prices were facing more pressures to fall back, and would likely lose the support of the 20-day moving average.