SHANGHAI, Jun. 24 (SMM) – Shanghai Composite Index tumbled by 2.5% last week following the resumption of IPO listings. SHFE 1408 copper contract prices moved between RMB 47,700-48,400/mt, but also met resistance at the 20-day moving average. Traded volumes were down by over 1 million lots, while positions fell by more than 30,000 lots. SHFE copper met strong resistance last week, but rallied on Thursday to rise to RMB 48,400/mt, which also helped improve the SHFE/LME copper price ratio. SHFE most active copper contract prices will track LME copper price trends and challenge RMB 48,800-49,000/mt, with support expected to form at RMB 47,300-47,500/mt.
In China’s physical copper markets, consumption will be dampened by tight financing and since many enterprises will focus on account settlements in June. Large traders will continue to keep prices firm, and increases in spot premiums will be limited in the latter half of the week as financial pressure grows. Speculative activity is expected to remain brisk.