SHANGHAI, Aug. 31 (SMM) – On Tuesday’s night trading, SHFE 1610 copper opened at RMB 36,250/mt and then advanced to RMB 36,330/mt thanks to positions closing by shorts. Later, the contract dived to RMB 36,140/mt, hurt by falling LME copper and crude oil, and then the contract rebounded with short covering. SHFE 1610 copper finally ended at RMB 36,260/mt, down RMB 130/mt with positions down 1,676.
On Wednesday, SHFE 1610 copper started higher at RMB 36,280/mt and broke through the 5-day moving average to RMB 36,390/mt with positions closing by shorts. Later, the contract dropped and found support at the 5-day moving average due to positions selling by longs. SHFE 1610 copper closed at RMB 36,270/mt, down RMB 120/mt with positions down 14,578. Positions of all SHFE copper contracts fell 7,672 to 510,000 with trading volumes at 270,000 lots. Positions of SHFE 1611 copper increased 11,556. To sum up, SHFE 1610 copper, meeting support at RMB 36,100, declined from highs on Wednesday.
SHFE 1610 copper is expected to drop in the short term but will rebound after G20 Summit due to entering in peak season.