SHANGHAI, Feb. 23 (SMM) – On Thursday, SHFE 1704 copper opened at RMB 48,920/mt and then dropped below the 5 and 10-day moving averages with leaving of longs. During the afternoon trading, SHFE 1704 copper declined further with diving ferrous metals and fluctuated at RMB 48,330/mt at the tail of trading. The contract closed at RMB 48,390/mt. Positions dropped 3,564 to 218,000 and trading volumes rose 17,370 to 218,000 lots. Positions of all SHFE copper contracts fell 3,100 to 541,000 with trading volumes up 24,978 to 431,000 lots. SHFE 1704 copper kept falling on Thursday. People’s Bank of China launched net withdrawals and Shibor increased for seven days in a row. With tight liquidity, ferrous and nonferrous metals dropped across the board. SHFE 1704 copper already fell below the 5 and 10-day moving average.
SHFE 1704 copper will test support at the 20-day moving average in a short term.