[Cu Price] Should Shorts Leave or Continue to Hold Positions as Holiday Comes? SMM Interview

SHANGHAI, Jun. 19 (SMM) – Today is the last trading day before the Chinese Dragon Boat holiday from Jun. 20-22. After a near 5% week-on-week drop, should short investors on the SHFE copper market go profit-taking by closing positions or continue to hold positions for the upcoming holiday? 

“Copper market will remain weak in the near term, and will lurch lower to 40,000 yuan per tonne, and even the 38,000 yuan mark, due to poor fundamentals,” an analyst from Guosen Futures told SMM in the latest interview. 

In the second half of 2015, China’s copper market will see higher supply pressures, and moreover, outflow of investment capital from the commodity market will also impair copper’s resistance to declines, the analyst added. 

Most of participants interviewed by SMM echoed his view. However, some advised the shorts to book profits first, believing copper price will rally back with falling dollar.   

The article is edited by SMM and is provided for information purpose only. SMM assumes no liability and does not warrant the accuracy, reliability or completeness of information contained or quoted in the article, either express or implied. SMM further disclaims any liability for losses in connection with the information contained or quoted in the article.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.