SMM Brief on SHFE Copper Prices on May 29

SHANGHAI, May 29 (SMM) – The most active SHFE copper contract for September delivery started RMB 30/mt lower at RMB 55,890/mt Tuesday. After the opening, the contract lurched around RMB 55,800/mt as shorts imposed selling pressures, testing a low at RMB 55,680/mt. In the afternoon however, as LME copper rose to USD 7,700/mt again on a rapidly falling US dollar index, and since the Shanghai Composite Index surged by 1.3%, SHFE 1209 copper contract gained rising momentum after hovering narrowly around RMB 56,100/mt, touching a high at RMB 56,230/mt at the tail of trading, Nevertheless, owing to large-scale position closings, the most active copper contract pared daily gains before finally ending RMB 160/mt or 0.29% higher at RMB 56,080/mt, with trading volumes increasing by 30,140 lots but positions decreasing by 5,468 lots. Positions for all SHFE copper contracts fell by 15,620 lots. Longs took profit-taking during the day, and combined with a substantive support, SHFE copper prices faced the risk to slide further over the near term.