SHANGHAI, Sept. 28 (SMM) – SHE 1512 copper opened at RMB 38,780/mt on Monday. Negative Chinese industrial value-added data encouraged investors to raise bearish bets aggressively, pushing the most active contract down to RMB 38,620/mt. Short positions surged over 6,500 lots, sending the red metal to an intraday low of RMB 38,120/mt. Finally, October copper on the SHFE ended down RMB 650/mt or 1.67% at RMB 38,170/mt. Positions for the contract were up 19,208 to 205,684. The short selling was reported in precious metals, base metals and industrial products, while crude oil and the US dollar index held largely stable. The decline was possibly due to optimism over the US dollar before the release of US non-farm payrolls later this week. Pre-holiday risk aversion was partly responsible for the slump. The most active contract should rebound after sharp declines.
