SHFE Copper Closes Higher (2017-3-28)

SHANGHAI, Mar. 28 (SMM) – On Tuesday, China’s central bank stopped reverse repos for three days in a row and withdrew a net of RMB 70 billion, lightening liquidity. SHFE 1705 copper opened at RMB 46,860/mt and then advanced to RMB 47,020/m with positions closing by shorts. Later, the contract declined after touching the 5-day moving average, hurt by exit of longs, down as low as RMB 46,560/mt. SHFE 1705 copper closed at RMB 46,740/mt. Positions were down 15,872 to 213,000 and trading volumes were up 69,860 to 401,000 lots. Positions of SHFE 1706 copper increased 9,084. Positions of all SHFE copper contracts fell 12,544 to 534,000 and trading volumes rose 104,000 to 614,000 lots.

SHFE 1705 copper will be hard to increase in the foreseeable future.