SHANGHAI, Mar. 1 (SMM) – SHFE 1604 copper started at RMB 36,050/mt overnight and dipped to RMB 35,710/mt in response to LME copper. Later the red metal rallied to RMB 35,900/mt answering to crude prices and US dollar. The contract rolled back all the losses after growing to RMB 36,100/mt with closing price down RMB 30/mt to RMB 36,060/mt. Positions decreased 7,670.
SHFE copper struggled around RMB 36,000/mt after opening Tuesday trading session at RMB 36,070/mt. The red metal sank to RMB 35,530/mt due to exit of longs and rise in shorts but once bounced back to RMB 36,110/mt thanks to growth in crude prices and firmness in Chinese shares, to end at RMB 35,960/mt, a fall of RMB 130/mt or 0.36%. Positions dropped 16,924 to 183,000 with trading volumes around 420,000 lots.
SHFE 1604 copper will test support at the 5 and 10-day moving averages owing to expectation for peak demand season and more pro-growth measures in China.