SMM Brief on SHFE Copper Prices on Oct. 12

SHANGHAI, Oct. 12 (SMM) –As LME copper prices overnight slumped by nearly USD 200/mt, SHFE 1112 copper contract prices, the most active one, opened RMB 1,310/mt lower at RMB 53,690/mt on Wednesday. SHFE three-month copper contract prices fell to RMB 52,950/mt after the opening, but then fluctuated higher as the Shanghai Composite Index surged 3% to move towards 2,400 points after the opening, and since LME copper prices returned to USD 7,400/mt. SHFE three-month copper contract prices broke above RMB 55,000/mt in the afternoon session, reaching as high as RMB 55,130/mt. However, at the tail of trading, SHFE three-month copper contract prices lost rising momentum due to large-scale position closings, with resistance at the 10-day moving average of RMB 55,200/mt. Finally, SHFE 1112 copper contract prices closed at RMB 54,930/mt, down RMB 70/mt, or a loss of 0.13%. Positions for SHFE 1112 copper contracts were down 24,296 lots, while trading volumes were up 259,000 lots, a significant increase for two consecutive days. The long and short investors mainly made intraday transactions, and will continue the struggle between them.