SHANGHAI, May 10 (SMM) – On Wednesday, SHFE 1707 copper opened at RMB 44,990/mt and then fluctuated at around RMB 44,937/mt. During the afternoon trading, SHFE 1707 copper declined slightly to RMB 44,730/mt and tried to rally at the tail of trading, but dropped after meeting resistance at the 5-day moving average. The contract closed at RMB 44,860/mt, up RMB 160/mt. Positions increased 2,090 to 197,000 and trading volumes rose 4,788 to 184,000 lots. Positions of all SHFE copper contracts reduced 4,304 to 597,612. China’s CPI dropped 1.2% YoY in April and PPI saw the first decline in 10 months on a monthly basis. Moreover, rising Shanghai Interbank Offered Rate (Shibor) kept tightening liquidity, raising market bearish sentiment.
Attention should be on support at lows.