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SMM Brief on SHFE Copper Prices on Sept. 26
Sep 26,2011 16:20CST
smm insight
Source:SMM
As LME copper prices dropped by more than 4% last Friday, SHFE 1112 copper contract prices, the most active one, opened down RMB 1,470/mt at RMB 55,870/mt on Monday.

SHANGHAI, Sept. 26 (SMM) –As LME copper prices dropped by more than 4% last Friday, SHFE 1112 copper contract prices, the most active one, opened down RMB 1,470/mt at RMB 55,870/mt on Monday. LME copper prices stabilized near USD 7,300/mt on Monday morning, and SHFE three-month copper contract prices remained weak after a low open, but gained support at the lows around RMB 55,060/mt, with prices fluctuating around RMB 55,500/mt. In the afternoon session, since LME copper prices plummeted by 6% to lose USD 7,000/mt and USD 69,000/mt, and since the Shanghai Composite Index also fell below 2,400 points, SHFE three-month copper contract prices tumbled, with prices again sliding by the daily limit of 7% to touch RMB 53,320/mt after the longs left the market. SHFE three-month copper contract prices tried to flee from the price mark, but failed given increasing sell-off pressures from the shorts. SHFE 1112 copper contract prices finally closed at the daily limit-down of RMB 53,320/mt, down RMB 4,020/mt or a loss of 7.01%. Positions for SHFE 1112 copper contracts were up 16,770 lots, and trading volumes were up 117,000 lots. After constant copper price declines, markets were dominated by panic sentiment. As the shorts actively built new positions, SHFE copper prices would fall further.
 

SMM Brief;SHFE copper prices

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