SMM Brief on SHFE Copper Prices on Jul. 11-Shanghai Metals Market

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SMM Brief on SHFE Copper Prices on Jul. 11

SMM Insight 03:48:16PM Jul 11, 2012 Source:SMM

SHANGHAI, Jul. 11 (SMM) – As LME copper prices came under pressure overnight, SHFE 1210 copper contract, the most active one, started RMB 330/mt down at RMB 54,970/mt Wednesday. After the opening, the contract climbed to the 10-day moving average of RMB 55,370/mt amid buying by some longs. However, LME copper prices were pushed down from earlier highs near the midday and caused the contract to experience a wave of small dives, down below the RMB 55,000/mt point. SHFE copper prices stopped falling and began lurching around RMB 55,000/mt in the afternoon. Finally, the most active copper contract for October delivery ended RMB 150/mt or 0.27% down at RMB 55,150/mt, with trading volumes increasing by 19,366 lots but positions decreasing by 4,694 lots. SHFE copper prices won temporary support at the 20-day moving average but the 5 and 10-day moving average see adhesion at around RMB 55,400/mt amid growing resistance. Hence, SMM believes SHFE copper prices will remain within the same pricing range in the foreseeable future.

 

SMM Brief on SHFE Copper Prices on Jul. 11

SMM Insight 03:48:16PM Jul 11, 2012 Source:SMM

SHANGHAI, Jul. 11 (SMM) – As LME copper prices came under pressure overnight, SHFE 1210 copper contract, the most active one, started RMB 330/mt down at RMB 54,970/mt Wednesday. After the opening, the contract climbed to the 10-day moving average of RMB 55,370/mt amid buying by some longs. However, LME copper prices were pushed down from earlier highs near the midday and caused the contract to experience a wave of small dives, down below the RMB 55,000/mt point. SHFE copper prices stopped falling and began lurching around RMB 55,000/mt in the afternoon. Finally, the most active copper contract for October delivery ended RMB 150/mt or 0.27% down at RMB 55,150/mt, with trading volumes increasing by 19,366 lots but positions decreasing by 4,694 lots. SHFE copper prices won temporary support at the 20-day moving average but the 5 and 10-day moving average see adhesion at around RMB 55,400/mt amid growing resistance. Hence, SMM believes SHFE copper prices will remain within the same pricing range in the foreseeable future.