SMM Brief on SHFE Copper Prices on Sept. 13

SHANGHAI, Sept. 13 (SMM) –SHFE 1111 copper contract prices, the most active one, opened down RMB 1,210/mt at RMB 66,550/mt on Tuesday. After the opening, SHFE three-month copper contract prices narrowly fluctuated around the daily moving average due to severe struggle between the long and short investors, with the fluctuating band around RMB 100/mt. Later, although increasing selling pressures from short investors caused SHFE three-month copper contract prices to meet resistance at the daily moving average, LME copper prices return above USD 8,800/mt supported the low-end SHFE three-month copper contract prices, which showed some resistance to fall sharply, with an intraday low of RMB 66,160/mt. At the tail of trading, SHFE three-month copper contract prices edged down due to position closings, with prices finally closing at RMB 66,310/mt, down RMB 1,450/mt or 2.14%. Positions for all SHFE copper contracts were up more than 35,000 lots. Positions of SHFE copper contracts for December delivery were up 24,224 lots, highlighting the characteristic before the delivery date. Trading volumes for SHFE 1111 copper contracts were up 85,418 lots, while positions were up by more than 12,000 lots in the afternoon session, but were up 9,828 lots due to position closings at the tail of trading. SHFE copper prices were already pressured by all moving averages, and will test the support at RMB 66,000/mt with increasing selling pressures from short investors.