SMM Brief on SHFE Copper Prices on Jun. 27

SMM Insight 03:29:10PM Jun 27, 2012 Source:SMM

SHANGHAI, Jun. 27 (SMM) – As LME copper extended weakness overnight, SHFE 1210 copper contract, the most active one, started RMB 290/mt down at RMB 53,690/mt Wednesday. Shorts continued to impose selling pressures during the day, but a rebounding Shanghai Composite Index gave a boost to the contract which moved around RMB 53,700/mt with a fluctuating band of RMB 300/mt. However, the Shanghai Composite Index slid in the afternoon, causing the contract to lower to test RMB 53,420/mt but then narrow daily declines at the tail of trading due to position closings. Finally, the most active copper contract for October delivery ended RMB 240/mt or 0.44% lower at RMB 53,740/mt, with trading volumes and positions increasing by 8,126 lots and 16,124 lots, respectively. In the face of great selling pressures, SHFE copper prices came under pressure at recent moving averages entirely, but buying emerged at the lows. Longs and shorts held divergent views at RMB 53,500/mt, which should be tested repeatedly for the near future.

 

SMM Brief on SHFE Copper Prices on Jun. 27

SMM Insight 03:29:10PM Jun 27, 2012 Source:SMM

SHANGHAI, Jun. 27 (SMM) – As LME copper extended weakness overnight, SHFE 1210 copper contract, the most active one, started RMB 290/mt down at RMB 53,690/mt Wednesday. Shorts continued to impose selling pressures during the day, but a rebounding Shanghai Composite Index gave a boost to the contract which moved around RMB 53,700/mt with a fluctuating band of RMB 300/mt. However, the Shanghai Composite Index slid in the afternoon, causing the contract to lower to test RMB 53,420/mt but then narrow daily declines at the tail of trading due to position closings. Finally, the most active copper contract for October delivery ended RMB 240/mt or 0.44% lower at RMB 53,740/mt, with trading volumes and positions increasing by 8,126 lots and 16,124 lots, respectively. In the face of great selling pressures, SHFE copper prices came under pressure at recent moving averages entirely, but buying emerged at the lows. Longs and shorts held divergent views at RMB 53,500/mt, which should be tested repeatedly for the near future.