SMM Brief on SHFE Copper Prices on Sept. 7

SHANGHAI, Sept. 7 (SMM) –SHFE 1111 copper contract prices, the most active one, opened up RMB 520/mt at RMB 67,100/mt on Wednesday, with prices moving upside after a high open. After the opening, SHFE three-month copper contract prices kept fluctuating narrowly around the daily moving average, and the low-end was supported by the closing price RMB 67,100/mt on the prior trading day. Near the midday, a drop in the US dollar helped LME copper prices rise above USD 9,000/mt, and the Shanghai Composite Index increased nearly 1.9% after breaking through 2,500 points. In response, short investors closed positions in a large scale, which drove SHFE three-month copper contract prices to touch an intraday high RMB 67,860/mt in the afternoon session. Finally, SHFE 1111 copper contract prices closed at RMB 67,800/mt, up RMB 1,020/mt or 1.53%. Positions for SHFE 1111 copper contracts were down 2,138 lots, and trading volumes were down 69,434 lots. With the gradual release of short investor's strength after four consecutive days' low close, SHFE three-month copper contract prices returned to move between the 20 and the 30-day moving averages.