SHANGHAI, Oct. 20 (SMM) – On Wednesday’s night trading, SHFE 1612 copper opened lower at RMB 37,200/mt and dipped below the 40-day moving average to RMB 36,970/mt before stabilizing. The contract later advanced to RMB 37,440/mt with positions closing by shorts and finally closed at RMB 37,300/mt, up RMB 30/mt. Trading volumes were up 21,346 to 132,486 lots and positions were down 3,150 to 194,122.
On Thursday, SHFE 1612 copper started at RMB 37,310/mt and fluctuated at around the 5-day moving average due to lack of news, with a session-low of RMB 37,270/mt and a session-high of RMB 37,410/mt. The contract finally ended at RMB 37,310/mt, up RMB 40/mt. Trading volumes rose 29,486 to 198,066 lots and positions fell 3,280 to 193,992. Trading volumes of all SHFE copper contracts increased 42,960 to 334,012 lots with positions up 224 to 442,270. To sum up, SHFE 1612 copper fluctuated at lows on Wednesday.
Global copper supply reported a glut of 90,000 mt from January to August 2016 by World Bureau of Metal Statistics on Wednesday. SHFE 1612 copper will be sensitive to decline for fundamental factors and is expected to keep fluctuating for the short term. European Central Bank will release interest rate decision on Thursday’s night trading, which is expected to hold unchanged. US’s existing home sales in September is predicted to be higher than August’s level and this may weigh on SHFE 1612 copper.