SMM Brief on SHFE Copper Prices on Jul. 5

SHANGHAI, Jul. 5 (SMM) – As LME copper price movement was restricted overnight, SHFE 1210 copper contract, the most active one, started RMB 70/mt down at RMB 55,950/mt Thursday. The contract hovered around the daily moving average following the opening and touched a high at RMB 56,110/mt. However, as the Shanghai Composite Index fell significantly and lost 2,200, the contract retreated and directly tested a low at RMB 55,660/mt, the 5-day moving average. SHFE 1210 copper contract, though, clawed back some of daily losses after gaining technical support, and then rallied and fluctuated around the daily moving average. Finally, the most active copper contract ended at RMB 55,980/mt, still down RMB 40/mt or 0.07%, with trading volumes increasing by 23,014 lots but positions decreasing by 4,856 lots. Both longs and shorts continued to conduct intraday operations while awaiting the European Central Bank’s meeting Thursday evening. SHFE copper prices need to gather impetus to break resistance at the RMB 56,000/mt mark but with growing support at the low-end.