SMM Brief on SHFE Copper Prices on Jun. 18

SHANGHAI, Jun. 18 (SMM) – As the conservative party in Greece took the upper hand, LME copper rallied to USD 7,600/mt, helping SHFE 1209 copper contract, the most active one, started significantly up by RMB 680/mt at RMB 55,440/mt Monday. After the opening, an increasing US dollar caused LME copper to come under pressure at USD 7,600/mt. With growing selling pressures for SHFE forward copper contracts, the most active copper contract fell gradually and narrowed gains amid position closings, down to a low at RMB 54,980/mt. In the afternoon, as LME copper stopped sliding, SHFE 1209 copper contract rallied and hovered around the daily moving average before finally ending at RMB 55,210/mt, up RMB 450/mt or 0.82%. Trading volumes and positions for SHFE 1209 copper contracts fell by 89,072 lots and 17,654/mt, while trading volume and positions for SHFE 1210 copper contract increased by 54,558 lots and 19,838 lots, highlighting the continuous shift of the most active copper contract, which should be completed Tuesday. Longs became more willing to keep up with the rising prices during the day, so the support at the 30-day moving average for SHFE copper will be tested repeatedly for the near future.