SMM Brief on SHFE Copper Prices on Dec. 14

SHANGHAI, Dec. 14 (SMM) –As LME copper prices closed with losses overnight, SHFE 1202 copper contract prices, the most active one, opened RMB 400/mt lower at RMB 55,750/mt Wednesday. As LME copper prices tested support at USD 7,500/mt during the whole trading day, and since Chinese stock markets remained weak and closed down, SHFE three-month copper contract prices fell to fluctuate around the daily moving average after meeting resistance at RMB 56,000/mt, with an intraday low at RMB 55,450/mt. Finally, the most actively-traded copper contract prices closed at RMB 55,710/mt, down RMB 440/mt or 0.78%. Positions for SHFE 1202 copper contracts were down 4,018 lots, and trading volumes were down 11,722 lots, while positions for SHFE 1203 copper contracts were up 12,318 lots, highlighting the continuous shift of the most actively-traded copper contracts. Short investors have more advantages against long investors, and SHFE copper prices have declined below all moving averages. In this context, SHFE copper prices will fall to between RMB 54,500-55,500/mt registered in the middle of November.