SMM Brief on SHFE Copper Prices on May 4

SHANGHAI, May 4 (SMM) – As LME copper prices continued to absorb negative news overnight, SHFE 1208 copper contract, the most active one, opened RMB 300/mt lower at RMB 58,000/mt Friday. After the opening, SHFE copper prices were pushed up rapidly after falling by RMB 100/mt, drifting higher along with moving averages but failing to reach RMB 58,250/mt near the midday. In the afternoon, SHFE copper prices inched down but then rose again before hitting an intraday high at RMB 58,350/mt. SHFE 1208 copper contract finally ended the day at RMB 58,310/mt, up RMB 210/mt or 0.36%, paring some of the prior day’s losses and testing support at the 20-day moving average. Trading volumes for SHFE 1208 copper contract fell by 22,920 lots, and positions slid by 5,532 lots. Both long and short investors kept cautious ahead of the US non-farm payrolls report. Short investors closed positions on a large-scale in the afternoon, and SHFE copper showed resilience but legged behind LME copper.