SMM Brief on SHFE Copper Prices on May 23

SHANGHAI, May 23 (SMM) – The most active SHFE 1209 copper contract opened RMB 700/mt lower at RMB 55,250/mt Wednesday, as LME copper retreated overnight. The contract fluctuated narrowly between RMB 55,000-55,300/mt after the opening, with a high at only RMB 55,290/mt. In the afternoon session, as LME copper tested last week’s low of USD 7,620/mt, and since Chinese stock markets also fell, SHFE 1209 copper contract lost ground rapidly, down below RMB 55,000/mt to as low as RMB 54,710/mt while shorts increased selling pressures. Nevertheless, position closing at the tail of trading helped SHFE 1209 copper contract pare some of daily losses before finally ending at RMB 55,000/mt, down RMB 950/mt or 1.7%. Positions and trading volumes for the most active copper contract added by 39,198 lots and 138,000 lots, respectively. With growing selling pressures, SHFE copper found weak support at RMB 54,700/mt.