SMM Brief on SHFE Copper Prices on Sept. 30

SHANGHAI, Sept. 30 (SMM) –As LME copper prices overnight stabilized above USD 7,100/mt, SHFE 1112 copper contract prices, the most active one, opened about RMB 300/mt higher at RMB 52,600/mt. Some short-term long investors tried to push up copper prices after the opening, but failed as LME copper prices continued to struggle around USD 7,100/mt, and since HSBC announced China's manufacturing PMI contracted in September for a third month. As a result, Chinese stock markets continued to set a new yearly low, and SHFE three-month copper contract prices basically fluctuated around RMB 53,000/mt. In the afternoon session, SHFE three-month copper contract prices jumped to an intraday high of RMB 54,900/mt after LME copper prices climbed up to USD 7,300/mt and supported by earlier position closings by shorts. SHFE 1112 copper contract prices finally closed at RMB 54,790/mt, up RMB 2,490/mt or a gain of 4.76%. Positions for SHFE 1112 copper contracts were down 14,690 lots, and trading volumes were down 235,000 lots, with daily turnover rate reaching 200%. Position holders' risk aversion sentiment was more pronounced before China's National Day holiday.