SMM Brief on SHFE Copper Prices on Jul. 23

SHANGHAI, Jul. 23 (SMM) – As LME copper tumbled overnight, SHFE 1211 copper contract, the most active one, started RMB 840/mt down at RMB 55,280/mt Monday. After the opening, LME copper prices retreated below USD 7,500/mt rapidly, and Chinese stock markets also hit a new recent low. As a large number of longs left the market and new shorts entered, SHFE copper prices slipped all the way after fluctuating temporarily and met resistance at RMB 55,390/mt, losing RMB 55,000/mt completely. SHFE 1211 copper contract touched a low at RMB 54,290/mt in the afternoon and finally ended RMB 1,750/mt or 3.12% lower at RMB 54,370/mt, with trading volumes and positions increasing by 246,000 lots and 61,098 lots, respectively. With growing selling pressures, SHFE copper prices will likely continue to fall over the near term.