SMM Brief on SHFE Copper Prices on Jul. 20

SHANGHAI, Jul. 20 (SMM) – As LME copper extended gains overnight, SHFE 1211 copper contract started RMB 200/mt up at RMB 56,290/mt Friday. After the opening, the contract tried to climb to RMB 56,430/mt but was restricted around RMB 56,250/mt as new shorts exerted selling pressures. In the afternoon though, as LME copper retreated rapidly on an increasing US dollar, the contract dropped and finally reversed earlier increases. SHFE copper prices drifted lower to RMB 55,950/mt after losing RMB 56,000/mt and suffered a great resistance at the RMB 56,000/mt mark with an intraday low touching RMB 55,850/mt. Finally, SHFE 1211 copper contract ended the day RMB 180/mt or 0.32% down at RMB 55,910/mt, with trading volumes and positions adding by 61,922 lots and 14,968 lots respectively. Longs and shorts still held divergent views at RMB 56,000/mt, so SHFE copper prices will test support repeatedly at the 5-day moving average for the immediate future.