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SMM Brief on SHFE Copper Prices on May 24

iconMay 24, 2012 16:17
Source:SMM
As LME copper extended the losing streak, the most active SHFE 1209 copper contract started RMB 60/mt lower at RMB 54,970/mt Thursday.

SHANGHAI, May 24 (SMM) – As LME copper extended the losing streak, the most active SHFE 1209 copper contract started RMB 60/mt lower at RMB 54,970/mt Thursday. LME copper lost USD 7,600/mt, and Chinese stock markets fell and came under pressure at the 5-day moving average, causing the contract to move lower after the opening. In the afternoon, as shorts imposed selling pressures again, trading volumes for the contract continued to increase but positions fell, with prices sliding to a low at RMB 54,550/mt. However, at the tail of trading, a falling US dollar helped LME copper rally and SHFE copper prices return above a key support of RMB 54,800/mt. Finally, SHFE 1209 copper contract closed RMB 120/mt or 0.22% higher at RMB 55,150/mt, with trading volumes and positions increasing by 112,000 lots and 2,372 lots, respectively. Trading volumes for all SHFE copper contracts added by 103,000 lots, but total positions fell by 6,554 lots, with growing divergence between longs and shorts at RMB 55,000/mt. SHFE copper exhibited resilience Thursday but face the risk to fall further for the foreseeable future as bearish sentiment dominates markets.
 

SHFE 1209 copper contract

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