SMM Brief on SHFE Copper Prices on Oct. 24

SHANGHAI, Oct. 24 (SMM) –As LME copper prices surged overnight, SHFE 1201 copper contract prices opened RMB 1,840/mt higher at RMB 53,500/mt on Monday. After the opening, SHFE three-month copper contract prices continued to fluctuate around the daily moving average of RMB 53,300/mt, with the low-end at RMB 52,800/mt. Later, HSBC announced HSBC's China Flash Purchasing Managers' Index (PMI) rebounded above the dividing line of 50 in October, lifting LME copper prices to stand above USD 7,300/mt and SHFE copper prices to challenge RMB 54,000/mt. In the afternoon session, LME copper prices stabilized at USD 7,400/mt, and Chinese stock markets surged by 2%, helping SHFE three-month copper contract prices to rise by their daily limit. Finally, SHFE 1201 copper contract prices closed at RMB 54,750/mt, up RMB 3,090/mt or a gain of 5.98%. Positions for SHFE 1201 copper contracts were down 4,942 lots, and trading volumes were down 346,000 lots, with the daily handover rate reaching as high as 300%. SHFE copper prices hadn't filled earlier shortfalls, and markets had little confidence over future copper price rebounds.