SMM Brief on SHFE Copper Prices on Jul. 3

SHANGHAI, Jul. 3 (SMM) – As LME copper gave up some of the gains overnight, SHFE 1210 copper contract, the most active one, started RMB 170/mt down at RMB 55,320/mt Tuesday. The contract stabilized at the daily moving average following the opening but still suffered resistance at RMB 55,500/mt. LME copper surged rapidly to USD 7,800/mt during major trading hours and helped the contract also increase above the RMB 56,000/mt mark, with a high at RMB 56,310/mt. In the afternoon, SHFE 1210 copper contract was restricted at the 60-day moving average and hovered at the high of RMB 56,100/mt. The Shanghai Composite Index dipped from earlier highs at the tail of trading, so SHFE copper prices lost RMB 56,000/mt. Finally, SHFE 1210 copper contract still closed RMB 610/mt or 1.10% up at RMB 56,100/mt, with trading volumes adding by 109,000 lots but positions decreasing by 13,438 lots. As shorts took a wait-and-see posture temporarily to shun risks during the day, SHFE copper prices failed to effectively break resistance at the 60-day moving average and are likely to test this price point repeatedly for the foreseeable future.