SHANGHAI, Sept. 1 (SMM) – On Wednesday’s night trading, SHFE 1610 copper opened at RMB 36,260/mt and then advanced to RMB 36,450/mt due to short recovering. Later, the contract, dropped back after breaking through the 5-day moving average and then fluctuated below the 5-day moving average, hurt by falling LME copper and crude oil. SHFE 1610 copper stabilized at the tail of trading and finally closed at RMB 36,340/mt, up RMB 60/mt with positions down 6,782.
On Thursday, SHFE 1610 copper started higher at RMB 36,360/mt and then broke through the 5-day moving average again thanks to positions closing by shorts. During the afternoon business, the contract climbed faster to RMB 36,670/mt and fell back with position closing by longs after touching the 10-day moving average. SHFE 1610 copper ended at RMB 36,530/mt, up RMB 250/mt with positions down 16,964. Positions of all SHFE copper contracts reduced 2,208 to 510,000 with trading volumes at 300,000 lots. Positions of SHFE 1611 copper rose 11,344, which is almost becoming the most actively traded one. To sum up, SHFE 1610 copper rose to above the 5-day moving average and challenged the 10-day moving average on Thursday.
SHFE 1610 copper is expected to fluctuate between the moving averages for the short term, supporting by expectation of peak season and recovery in demand after G20 Summit in Hangzhou.