SMM Brief on SHFE Copper Prices on May 2

SHANGHAI, May 2 (SMM) – LME copper failed to increase to USD 8,500/mt and reported falling transaction volumes during the May Day holiday period. However, SHFE 1208 copper contract, the most active one, opened RMB 440/mt higher at RMB 58,910/mt Wednesday, but then suffered selling pressures from short investors before trending down towards as low as RMB 58,520/mt. Near the midday, long investors actively built new positions at the lows and pushed SHFE 1208 copper contract prices above moving averages. SHFE 1208 copper contract prices reached RMB 58,950/mt at the high-end in the afternoon, then hovered narrowly around RMB 58,800/mt, and finally ended RMB 310/mt or 0.53% higher at RMB 58,780/mt. Trading volumes and positions for SHFE 1208 copper contract increased by 39,640 lots and 11,156 lots, respectively, while both long and short investors kept cautious during the day. Despite strong support at the 20-day moving average, SHFE copper prices will face an uneven road to move higher.