SMM Brief on SHFE Copper Prices on May 15

SHANGHAI, May 15 (SMM) – The most active SHFE 1208 copper contract opened RMB 1,080/mt down at RMB 55,600/mt Tuesday, since LME copper prices slumped overnight. As LME copper prices hovered around USD 7,800/mt during the whole trading day, and since Chinese stock markets slid by more than 1%, SHFE 1208 copper contract came under pressure and swung weakly around the daily moving average, with a fluctuating band of RMB 400/mt and reaching a low at RMB 55,280/mt. At the tail of trading, SHFE 1208 copper contract pared the daily drops due to large-scale position closings, climbed to a high at RMB 56,090/mt, and finally ended at RMB 55,950/mt, down RMB 730/mt or a loss of 1.29%. Positions and trading volumes for the most active contract decreased by 14,440 lots and 134,000 lots, respectively, while those for SHFE 1209 copper contract added by 16,660 lots and 2,514 lots, respectively. This indicated the shift of the most active copper contract. Owing to weakening buying support, SHFE copper prices made corrections following the previous two days' considerable declines.