SMM Brief on SHFE Copper Prices on May 8

SHANGHAI, May 8 (SMM) – LME copper prices rallied on the falling US dollar Tuesday morning, which helped the most actively-traded SHFE 1208 copper contract start RMB 370/mt higher at RMB 57,900/mt. However, as Chinese stock markets lowered to test support at the 5-day moving average, the contract continued to fluctuate in a narrow band of RMB 150/mt during the whole trading day, with considerable resistance at RMB 58,000/mt. At the tail of trading, while investors closed positions, SHFE 1208 copper contract retreated below the daily moving average, but finally ended RMB 120/mt or 0.21% higher at RMB 57,650/mt. Trading volumes for the most actively-traded copper contract decreased by 21,164 lots, while positions increased by 8,200 lots. With intersection between the 10- and 20-day moving averages, SHFE copper prices faced increasing pressures near RMB 57,900/mt.