SHANGHAI, Sept. 22 (SMM) – SHFE 1511 copper started at RMB 40,430/mt for night trading Monday and edged up to RMB 40,480/mt. Later, the red metal dived to RMB 40,240/mt after meeting resistance at moving averages, to end at RMB 40,270/mt, up by RMB 120/mt. Positions grew 1,792 with trading volumes around 160,000 lots.
SHFE copper prices dropped after the open of Tuesday trading session with shorts gathering strength. The contract rebounded from RMB 40,000/mt due to growing long positions. Near session’ end, Chinese IF stock index retreated earlier gains and this triggered exit of longs in commodity market. As such, SHFE copper ended at a session low of RMB 39,920/mt, down by RMB 230/mt or 0.57%. Positions grew 5,598 to 190,326 with trading volumes down 220,000 lots.
Continuous rise in US dollar weighs down commodity prices. Besides, longs’ confidence weakened due to volatile crude oil prices and a slump in SHFE zinc prices. SHFE copper prices fall below RMB 40,000/mt. Hence, SHFE 1511 copper may drop to the 60-day moving average this evening despite the support at the 20-day moving average.