SMM Brief on SHFE Copper Prices on Jul. 24

SHANGHAI, Jul. 24 (SMM) – As LME copper extended weakness overnight, SHFE 1211 copper contract, the most active one, started RMB 470/mt down at RMB 54,300/mt Tuesday. After the opening, the contract continued to fluctuate around the opening price and touched a low at RMB 54,170/mt. During major trading hours, the HSBC announced that the HSBC China manufacturing PMI rose from the previous data and lifted LME copper prices. However, as there was no substantial buying, and as Chinese stock markets remained sluggish, SHFE copper prices merely edged up from the daily moving average, came under clear pressure at the previous session's settlement price RMB 54,800/mt, and basically hovered around RMB 54,700/mt in the afternoon. At the tail of trading though, short selling appeared again and pressured SHFE copper prices down below the daily moving average again and returning to around the opening price. Finally, SHFE 1211 copper contract closed RMB 270/mt or 0.49% lower at RMB 54,500/mt, with trading volumes decreasing by 106,000 lots but positions adding by 8,816 lots. SHFE copper prices gained increasing buying after slumping below RMB 54,000/mt, but it remains early to say prices will stop falling from this price mark.