SMM Brief on SHFE Copper Prices on May 18

SHANGHAI, May 18 (SMM) – As LME copper fell overnight, SHFE 1209 copper contract opened RMB 140/mt down at RMB 54,950/mt Friday. LME copper prices sank after meeting resistance at USD 7,700/mt during the day, and Chinese stock markets gave up all the previous day’s gains. In this context, SHFE 1209 copper contract fluctuated in a wide band, came under pressure at the 5-day moving average of RMB 55,480/mt, but slid rapidly in the afternoon to as low as RMB 54,810/mt. Finally, SHFE 1209 copper contract settled RMB 140/mt or 0.25% higher at RMB 55,230/mt, with trading volumes and positions increasing by 182,000 lots and 21,588 lots, respectively. The struggle at RMB 55,000/mt between longs and shorts was severe, and short-term shorts began to return to markets. SHFE copper prices are likely to test RMB 55,000/mt repeatedly for the foreseeable future in the face of selling pressures and technical resistance.