SHANGHAI, Oct. 25 (SMM) –As LME copper prices extended gains overnight, the most active SHFE 1201 copper contract prices opened RMB 2,500/mt higher at RMB 56,000/mt on Tuesday, and fluctuated around the price mark after the opening. LME copper prices surged significantly near the midday and challenged USD 7,800/mt, and Chinese stock markets also returned to 2,400 points, helping all SHFE copper contracts increase sharply. Large-scale position closings by short investors also pushed SHFE copper prices to the upper trading limit of RMB 57,240/mt. In the afternoon session, LME copper prices fell to above USD 7,700/mt, and SHFE three-month copper contract prices also declined from highs due to large scale position closings, with prices closely fluctuating around RMB 57,000/mt. Finally, SHFE 1201 copper contract prices closed at RMB 56,710/mt, up RMB 3,210/mt or a gain of 6%. Positions for SHFE 1201 copper contracts were down 31,762 lots, while trading volumes were up 248,000 lots. Overall positions for all SHFE copper contracts were down 65,570 lots, but trading volumes were up 256,000 lots. SHFE copper prices Tuesday touched the upper trading limit for two consecutive days, but both long and short investors chose to close positions during the whole trading day, indicating growing risks over the short term.