SMM Brief on SHFE Copper Prices on Sept. 9

SHANGHAI, Sept. 9 (SMM) –SHFE 1111 copper contract prices, the most active one, opened slightly down RMB 70/mt at RMB 67,800/mt on Friday. After opening, short term long investors actively increased new positions, trying to push up copper prices before the release of China's economic results. However, SHFE three-month copper contract prices failed to break the resistance at RMB 68,000/mt, and reached a high at RMB 68,030/mt. Later, China announced the higher-than-expected CPI data for August, and Chinese stock markets slid from high levels, failing to hold 2,500 points. In response, SHFE three-month copper contract prices moved downward, and lowered further after breaking the daily moving average. At the tail of trading, due to increasing selling pressures, SHFE three-month copper contract prices were pressured further to an intraday low RMB 67,440/mt, but gained support near the 5-day moving average. Finally, SHFE 1111 copper contract prices closed at RMB 67,620/mt, down RMB 250/mt or a loss of 0.37%. Trading volumes for SHFE 1111 copper contracts were up 17,132 lots, and positions were up 2,802 lots. SHFE three-month copper contract prices rose and fell slower than LME copper prices, and would continue to fluctuate, with heavy pressures at the 30-day moving average.