SMM Brief on SHFE Copper Prices on May 30

SHANGHAI, May 30 (SMM) – As LME copper fell from initially rising overnight, the most active SHFE copper contract for September delivery started RMB 340/mt lower at RMB 55,600/mt Wednesday. The contract then suffered aggressive sell-offs from shorts following two days’ price adjustments, losing support at RMB 55,500/mt before sliding all the way, with a high at only RMB 55,650/mt. In the afternoon, although LME copper stopped falling and began to inch higher, SHFE 1209 copper contract was still pressured below RMB 55,500/mt. Finally, the most active contract settled RMB 620/mt or 1.11% down at RMB 55,320/mt, with trading volumes and positions adding by 50,266 lots and 6,278 lots, respectively. SHFE copper slid again below all recent moving averages during the day as shorts dominated the market, with the urgent need to test support at RMB 55,000/mt.