SHANGHAI, Jan. 4 (SMM) – SHFE market was closed last Friday for Chinese New Year holiday 2016.
SHFE 1602 copper opened Monday trading session at RMB 36,540/mt and once sank to RMB 35,950/mt in response to reducing longs and bearishness, hurt by China’s shares and crude oil prices. The contract hovered around RMB 36,080/mt later and touched a low of RMB 35,930/mt due to slump in Chinese stock market. But the contract rallied to RMB 36,100/mt with shorts exiting market with closing prices down RMB 510/mt or 1.39%. Positions for SHFE 1602 copper decreased 19,262 to 175,346 with trading volumes at 234,000 lots. SHFE 1603 copper saw positions up 10,526 to 294,626, contributed mainly by shorts and trading volumes were at 225,000 lots.
Markets expect US November’s construction spending and December’s ISM manufacturing PMI and employment sub-index to be downbeat. Thus, dollar will go down. SHFE 1602 copper should remain on downside track this evening given bearishness in Chinese stock market.