SMM Brief on SHFE Copper Prices on Jul. 30

SHANGHAI, Jul. 30 (SMM) – As LME copper prices continued to rise last Friday, SHFE 1211 copper contract, the most active one, started RMB 540/mt up at RMB 55,000/mt Monday. After the opening, the contract stabilized along with the daily moving average as LME copper prices broke resistance at the 60-day moving average, climbing to a high at RMB 55,350/mt in the morning. In the afternoon, the Shanghai Composite Index again hit a new low this year, and LME copper prices also retreated from earlier highs, causing SHFE copper prices to fall below the daily moving average and gradually narrow daily gains as new shorts entered markets, down to as low as RMB 54,580/mt. Finally, SHFE 1211 copper contract ended RMB 370/mt or 0.68% higher at RMB 54,830/mt, with trading volumes increasing by 28,908 lots but positions decreasing by 19,032. Total trading volumes added by 53,602 lots, but total positions fell by 27,766 lots. As resistance for SHFE copper prices grew, investors were still cautious towards keeping up with rising prices.