SMM Brief on SHFE Copper Prices on Jun. 21

SHANGHAI, Jun. 21 (SMM) – As LME copper sank overnight, SHFE 1210 copper contract, the most active one, started RMB 800/mt down at RMB 54,350/mt Thursday. As the HSBC China manufacturing PMI continued to fall, LME copper came under pressure and retreated below the 10-day moving average, and the Shanghai Composite Index tumbled by 1.5%. The contact thus hovered weakly around the daily moving average of RMB 54,400/mt with a fluctuating band of only RMB 100/mt. At the tail of trading, the contract touched a low at RMB 54,010/mt amid rising trading volumes and positions. Finally, SHFE 1210 copper contract settled RMB 1,090/mt or 1.98% down at RMB 54,060/mt, with trading volumes and positions adding by 882,000 lots and 93,352 lots, respectively. Total trading volumes and positions increased by 118,000 lots and 39,426 lots, respectively. SHFE copper fell below all recent moving averages amid growing short selling pressures. As such, SHFE copper will keep weak for the near future, testing support at the RMB 54,000/mt mark.