SHFE open interest increase indicates potential for weaker demand, prices - Goldman Sachs

An increase in Shanghai Futures Exchange (SHFE) open interest since late October indicates potential for still weaker metal prices, according to analysts at Goldman Sachs.

Rising open interest combined with falling metal prices raises a “red flag” on China’s commodities driven “old economy,” analysts at the bank said this week. Since late October, the market has witnessed an “eye-catching rise in SHFE open interest across the metals complex”, they said. In particular, copper has seen the largest increase in open interest in 12 months....


Charlotte Radford

November 19, 2015

03:43 GMT