SMM Brief on SHFE Copper Prices on May 10

SHANGHAI, May 10 (SMM) – The most active SHFE 1208 copper contract started RMB 200/mt higher at RMB 57,490/mt Thursday, and then fluctuated narrowly around RMB 57,500/mt without a noticeable trend and reaching a low at RMB 57,340/mt. In the afternoon session, as LME copper prices moved higher further after breaking USD 8,100/mt due to the falling US dollar, SHFE 1208 copper contract increased to as high as RMB 57,800/mt but kept hovering below moving averages owing to technical resistance and a lack of substantive buying support. Finally, the most active copper contract ended RMB 480/mt or 0.84% higher at RMB 57,770/mt, with trading volumes and positions decreasing by 42,320 lots, and 6,816 lots, respectively. SHFE copper prices exhibited some resilience, but will continue to weaken on account of intersection between the 10- and 20-day moving averages, as well as low market sentiment.