SHANGHAI, May 23 (SMM) – On Tuesday, SHFE 1707 copper swung in a wide range at around RMB 46,000/mt after opening with resistance at the 40-day moving average. The contract later declined, hurt by positions closing by longs. During the afternoon trading, SHFE 1707 copper surrendered previous gains with other falling metals, down as low as RMB 45,800/mt, and closed at RMB 45,770/mt, down RMB 40/mt. Trading volumes reduced 110,000 to 200,000 lots and positions rose 1,598 to 206,000. Positions of all SHFE copper contracts staged small changes. Shanghai Interbank Offered Rate (Shibor) remained higher than loan prime rate (LPR), and capital cost kept rising, a result of financial deleverage. But, this has not conducted to real economy yet. Countries divided on crude oil output cut, and COMEX oil thus gave up previous gains.
SHFE 1707 copper will keep fluctuating at current level on Tuesday’s night trading.
