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SMM Brief on SHFE Copper Prices on Oct. 13
Oct 13,2011 16:55CST
smm insight
Source:SMM
As LME copper prices overnight rose by nearly 2%, SHFE 1112 copper contract prices, the most active one, opened RMB 730/mt higher at RMB 54,880/mt on Thursday.

SHANGHAI, Oct. 13 (SMM) –As LME copper prices overnight rose by nearly 2%, SHFE 1112 copper contract prices, the most active one, opened RMB 730/mt higher at RMB 54,880/mt on Thursday. After the opening, SHFE three-month copper contract prices met resistance after briefly increasing to an intraday high of RMB 55,450/mt as short-term long investors entered into the market, but the low-end price got support at RMB 54,500/mt since the Shanghai Composite Index extended Wednesday’s gains. In the afternoon session, SHFE three-month copper contract prices fell below the RMB 54,500/mt mark, reaching at a low RMB 54,320/mt, as LME copper prices retreated below USD 7,400/mt following a slight rebound in the US dollar index. Position closings at the tail of trading led SHFE 1112 copper contract prices to finish the day at RMB 54,880/mt, up RMB 730/mt or 1.35%. Positions for SHFE 1112 copper contracts were up 10,812 lots, while trading volumes were down 179,000 lots. Short investors overnight continued to increase positions, and long investors chose to close positions during the whole trading day. China will announce September CPI data and other important economic data Friday, and markets expect inflation will remain high, and that tight credit situation will sustain, which will impose great pressures on SHFE copper prices. Therefore, even if the US dollar index falls and LME copper prices move higher, there will be not a significant increase in SHFE copper prices.   
 

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