SHFE Lead Closes with Losses on Position Closure by Longs (Oct. 30, 2015)

SHANGHAI, Oct. 30 (SMM) – SHFE 1512 lead started at RMB 13,300/mt for night trading Thursday and then moved higher to RMB 13,360/mt. Later the contract fell back due to rising shorts, to close down RMB 40/mt or 0.3% at RMB 13,295/mt. Trading volumes saw a drop of 6,354 to 2,016 lots with positions down 4 to 14,232.

SHFE 1512 lead extended Thursday night’s losses on Friday and fell to RMB 13,170/mt due to exit of longs, to close at RMB 13,220/mt, losing RMB 115/mt or 0.86%. Trading volumes fell 1,520 to 6,850 lots and positions dropped 718 to 13,518.

Position closure by shorts are lower than longs and far-month contracts suffer sell-offs. Thus, SHFE 1512 lead should test support at the 60-day moving average.