SMM Brief on SHFE Copper Prices on May 16

SHANGHAI, May 16 (SMM) – As LME copper extended losing streak overnight, the most active SHFE 1208 copper contract opened RMB 130/mt down at RMB 55,530/mt Wednesday. After the opening, the contract drifted lower after hovering briefly around the opening price, with a high at RMB 55,700/mt. In the afternoon session, LME copper slid below USD 7,700/mt and dragged down the contract gradually to as low as RMB 54,660/mt after losing RMB 55,000/mt. Finally, SHFE 1208 copper contract ended at RMB 54,690/mt, down RMB 970/mt or 1.74%, with trading volumes and positions falling by 16,980 lots and 3,624 lots, respectively. However, trading volumes and positions for SHFE 1209 copper contract increased by 109,000 lots and 61,138 lots, respectively, highlighting the continuous shift of the most active copper contract. Positions for all SHFE copper contracts exceeded 600,000 lots as short investors began to dampen markets, inverting from previous cautious attitudes. In this context, SHFE copper prices will continue to fall for the foreseeable future.