SMM Brief on SHFE Copper Prices on Oct. 20

SHANGHAI, Oct. 20 (SMM) –As LME copper prices slumped overnight, SHFE 1201 copper contract prices opened RMB 2,600/mt lower at RMB 51,610/mt on Thursday. After the opening, long investors withdrew from the market, and short investors imposed new selling pressures. In this context, SHFE three-month copper contract prices slipped by their daily limit, down to RMB 50,950/mt and pressuring down at near the price mark during the whole trading day. Finally, SHFE 1201 copper contract prices closed at RMB 50,950/mt, down RMB 3,260/mt. Positions for SHFE 1201 copper contracts were up 35,556 lots, while trading volumes were down 237,000 lots. A large number of short investors still chose to increase new positions after SHFE copper prices fell by their daily limit, and SHFE copper prices are likely to loss the support at RMB 50,000/mt.