SMM Brief on SHFE Copper Prices on Jun. 5

SMM Insight 05:12:58PM Jun 05, 2012 Source:SMM

SHANGHAI, Jun. 5 (SMM) – As the US dollar index lost the 10-day moving average overnight, the most active SHFE copper contract for September delivery started RMB 540/mt up at RMB 53,470/mt Tuesday. After the opening, as shorts closed positions, the contract stabilized gradually and touched a high at RMB 53,680/mt, with a fluctuating band of RMB 200/mt. Chinese stock markets stopped falling during the day, also providing support for SHFE copper prices. At the tail of trading, the contract slid below the daily moving average and narrowed daily gains. Finally, the most active copper contract settled RMB 560/mt or 1.06% higher at RMB 53,490/mt, with trading volumes and positions decreasing by 349,000 lots and 25,234 lots, respectively. Without guidance from the LME, both longs and shorts kept wary of operations, leading to a considerable drop in trading volumes. SHFE copper will continue to fall for the near term.  
 

SMM Brief on SHFE Copper Prices on Jun. 5

SMM Insight 05:12:58PM Jun 05, 2012 Source:SMM

SHANGHAI, Jun. 5 (SMM) – As the US dollar index lost the 10-day moving average overnight, the most active SHFE copper contract for September delivery started RMB 540/mt up at RMB 53,470/mt Tuesday. After the opening, as shorts closed positions, the contract stabilized gradually and touched a high at RMB 53,680/mt, with a fluctuating band of RMB 200/mt. Chinese stock markets stopped falling during the day, also providing support for SHFE copper prices. At the tail of trading, the contract slid below the daily moving average and narrowed daily gains. Finally, the most active copper contract settled RMB 560/mt or 1.06% higher at RMB 53,490/mt, with trading volumes and positions decreasing by 349,000 lots and 25,234 lots, respectively. Without guidance from the LME, both longs and shorts kept wary of operations, leading to a considerable drop in trading volumes. SHFE copper will continue to fall for the near term.