SHANGHAI, Dec. 22 (SMM) – SHFE 1602 copper started at RMB 36,200/mt for night trading Monday and then climbed to RMB 36,590/mt due to weaker dollar. Later, the contract fell back owing to exit of longs and ended above the 40-day moving average. Both positions and trading volumes reported losses.
SHFE 1602 copper opened Tuesday trading session at RMB 36,520/mt and moved around RMB 36,500/mt. Later the contract dipped to RMB 36,120/mt because of profit-taking by longs and growing shorts. In the afternoon business, the contract only railed to RMB 36,390/mt thanks to short-covering and closed at RMB 36,250/mt with a gain of RMB 330/mt. Positions decreased 7,542 to 291,976 with trading volumes around 530,000 lots. Positions for SHFE 1603 copper surged 25,704 to 206,826, contributed mainly by longs, while positions for all SHFE copper contracts fell to 770,000.
SHFE 1602 copper will test support from the 40-day moving average tonight. Attention is turning to final reading of US Q3’s year-on-year GDP growth. Us dollar index should be weighed down, which however, will little affect copper prices.