SMM Brief on SHFE Copper Prices on Sept. 22

SHANGHAI, Sept. 22 (SMM) –As LME copper prices lost USD 8,100/mt after the opening, SHFE 1112 copper contract prices, the most active one, opened down RMB 1,010/mt at RMB 61,480/mt on Thursday. After the opening, SHFE three-month copper contract prices experienced a wave of panic declines, falling to a low of RMB 59,370/mt after breaking RMB 60,000/mt. In this context, buying support came in, and helped SHFE three-month copper contract prices return to RMB 60,850/mt and then fluctuate around the price mark. However, the rebound was limited due to overshadowed bearish sentiment, with the high-end price failing to exceed the opening price of RMB 61,480/mt. In the afternoon session, the Shanghai Composite Index slumped by nearly 2.78%, dropping to near the opening level of 2,440 points on the previous trading day. As a result, SHFE 1112 copper contract prices were pressured at the daily moving average, and finally closed at RMB 60,260/mt, down RMB 2,230/mt, or a loss of 3.57%. Positions for SHFE 1112 copper contracts were up 14,424 lots, and trading volumes were significantly up 59,192 lots. Without support from the macro-economic front, positive news, demand side and technical indicators, copper markets were expected to extend the losses.