SHANGHAI, Dec. 28 (SMM) – SHFE 1602 copper dropped at a fast pace after opening Monday trading session due to falling profits at Chinese industrial enterprises during January-November and growing inventories. SHFE copper started to stabilize after falling to RMB 36,150/mt.
In the afternoon business, the red metal slipped below the 40-day moving average of RMB 35,800/mt owing to depreciation in Chinese yuan, new rules in China’s foreign exchange market and slump in Chinese stock market. The contract finally ended at RMB 35,740/mt, down RMB 520/mt. Positions reduced 16,312 for SHFE 1602 copper while growing 15,626 to 258,388 for SHFE 1603 copper.
SHFE 1603 contract shifted to the most active contract at session’s end with longs closing positions. SHFE 1603 copper should test support from the 20-day moving average this evening.
