SHANGHAI, Nov. 17 (SMM) – On Thursday, SHFE 1701 copper opened at RMB 43,910/mt and then fluctuated at around RMB 43,800/mt with positions closing both by longs and shorts. The contract later plumped to RMB 43,410/mt as other base metals dropped due to exit of longs and rallied to RMB 43,850/mt because shorts took profits. Ferrous metals dived and SHFE 1701 copper thus declined at the tail of trading, hurt by leaving of longs. The contract finally closed at RMB 43,670/mt, down RMB 910/mt or 2.04%. Positions fell 17,052 to 231,000 and trading volumes reduced 162,000 to 372,000 lots. Positions of all SHFE copper contracts decreased 18,212 to 514,000 with trading volumes down 221,000 to 524,000 lots. SHFE 1701 copper kept falling on Thursday with positions closing by longs. Diving ferrous metals raised market wary sentiment. It is heard that SHFE will discuss to suspend night trading of ferrous metals, triggering market panic.
Attention should be on US Federal Reserve Chairwoman Yellen’s speech at Congressional Joint Economic Committee on Thursday’s night. If US dollar increases further, SHFE 1701 copper will keep downward momentum on Thursday’s night trading, or will rise to the 10-day moving average.