SHANGHAI, May 24 (SMM) – On Wednesday, SHFE 1707 copper opened at RMB 46,040/mt and then declined to RMB 45,750/mt, hurt by long selling. During the afternoon trading, the contract dived to the 20-day moving average briefly, down as low as RMB 45,510/mt. SHFE 1707 zinc later rallied to RMB 45,770/mt thanks to short covering at lows and ended at RMB 45,780/tm, down RMB 170/mt. Trading volumes increased 32,000 lots to 231,000 lots and positions reduced 4,314 to 202,000. Trading volumes of all SHFE copper increased 76,000 to 409,000 lots and positions rose 13,000 to 582,000. Moody's Investors Service has today downgraded China's long-term local currency and foreign currency issuer ratings to A1 from Aa3, weighing down Chinese yuan. Crude oil outperformed commodities and stabilized above USD 51/bbl after oil producing countries announced to extend oil output cut for another 9 months, shoring up base metals.
SHFE 1707 copper will keep fluctuating at around RMB 45,700/mt on Wednesday’s night trading.