SMM Brief on SHFE Copper Prices on Sept. 19

SHANGHAI, Sept. 19 (SMM) –As LME copper prices fell back on the previous trading day, SHFE 1112 copper contract prices, the most active one, opened down RMB 700/mt at RMB 64,850/mt on Monday. Since LME copper prices directly lowered to test USD 8,500/mt after sliding below USD 8,600/mt, SHFE three-month copper contract prices moved lower after a down open, and were pressured at the daily moving average, with an intraday high of only RMB 64,940/mt. A nearly 2% drop in the Shanghai Composite Index worsened already weak SHFE three-month copper contract prices, and coupled with the fact that LME copper prices lost USD 8,500/mt at the tail of trading, SHFE three-month copper contract prices suffered aggressive selling pressures and fell to a yearly low of RMB 63,310/mt. Finally, SHFE 1112 copper contract prices closed at RMB 63,370/mt, down RMB 2,180/mt or a loss of 3.33%. Positions for SHFE 1112 copper contracts were up 38,726 lots, and trading volumes were up 140,000 lots. With short investors' selling pressures gathering and downside technical indicators, SHFE three-month copper contract prices were expected to move lower.