SHANGHAI, Dec. 27 (SMM) – On Tuesday, SHFE 1703 copper, becoming the most actively traded one, opened higher at RMB 44,210/mt. Profits growth at China’s above-scale industrial enterprises released on Tuesday increased to 14.5% YoY in November, hitting the year’s second highest level, and was higher than 9.8% seen in October. SHFE 1703 copper thus advanced to RMB 44,560/mt with entering of longs and then dropped marginally, hurt by positions closing by longs. Later, the contract stabilized at around RMB 44,400/mt. During the afternoon trading, SHFE 1703 copper climbed to RMB 44,850/mt thanks to exit of shorts and fell after touching the 5-day moving average. The contract finally closed at RMB 44,720/mt, up RMB 440/mt. Positions fell 882 to 169,000 and trading volumes dropped 39,288 to 131,000 lots. Positions of all SHFE copper contracts fell 9,308 to 503,292 with trading volumes down 158,000 to 335,000 lots. SHFE 1703 copper rallied on Tuesday, supported by positive profits at industrial enterprises, but met resistance at the 5-day moving average. Market players are more likely to avoid risk and take profits at the end of year.
SHFE 1703 copper is predicted to range between RMB 44,000-44,850/mt on Tuesday’s night trading.
