SMM Brief on SHFE Copper Prices on May 25

SHANGHAI, May 25 (SMM) – As LME copper extended the losing streak, the most active SHFE 1209 copper contract started RMB 260/mt lower at RMB 55,150/mt Friday. The contract moved lower following the opening as longs closed positions, down to RMB 54,830/mt. In the afternoon, a falling US dollar helped LME copper rally to USD 7,600/mt, so the contract climbed to a high of RMB 55,460/mt after breaking RMB 55,000/mt abruptly. In this context, shorts chose to leave the market. Chinese stock markets lost by nearly 1% and also dragged down SHFE copper prices. Finally, SHFE 1209 copper contract closed RMB 480/mt or 0.87% up at RMB 55,370/mt, with trading volumes decreasing by 69,196 lots but positions increasing by 5,386 lots. Due to increasing divergence, both longs and shorts were wary of operations at RMB 55,000/mt to avoid overnight risks.