SHFE Copper Finishes with Gains (2017-5-15)

SHANGHAI, May 15 (SMM) – People’s Bank of China announced to strengthen financial supervision, stabilize market anticipation by de-leveraging and holding balance of liquidity in its Q1’s monetary policy report. The bank also indicated that balance sheet cut does not mean liquidity tightening and expanded balance sheet in April, easing market wary sentiment. SHFE 1707 copper opened at RMB 45,200/mt and then advanced to RMB 45,300/mt as longs strengthened. The contract later declined slightly to RMB 45,190/mt and broke through the 10-day moving average thanks to positions closing by shorts, up to as high as RMB 45,560/mt. SHFE 1707 copper closed at RMB 45,430/mt, with positions down 2,448 to 214,000 and trading volumes down 60,160 to 205,000 lots. Positions of all SHFE copper contracts reduced 5,610 to 602,660.

SHFE 1705 copper closed at RMB 45,280/mt on delivery date, with settlement price at RMB 45,173, and delivery volume at 18,175 mt.

SHFE 1707 copper will approach to the 20-day moving average on Monday’s night trading.