SMM Brief on SHFE Copper Prices on Nov. 3

SHANGHAI, Nov. 3 (SMM) –As LME copper prices closed higher overnight, SHFE 1201 copper contract prices, the most active one, opened RMB 490/mt up at RMB 58,210/mt on Thursday. After the opening, given resistance at the 5-day moving average, SHFE three-month copper contract prices only climbed to RMB 58,350/mt at the high-end and then fluctuated around RMB 57,500/mt. In the afternoon session, as LME copper prices slid to test USD 7,700/mt, SHFE three-month copper contract prices declined by more than RMB 1,000/mt, with the daily low-end at RMB 56,580/mt. Finally, the most actively-traded copper contract prices closed at RMB 56,800/mt, down RMB 920/mt or a loss of 1.59%. Positions for the most actively-traded copper contracts were down 9,610 lots, while trading volumes were down 136,000 lots. However, total trading volumes were still above 1 million lots, and the handover rate was more than 400%. Germany, France and other European countries announced on November 3rd Beijing time to suspend Greece’s bailout fund of EUR 8 billion which was previously scheduled to release this month, and will make the final decision after the Greece’s public vote. Meanwhile, the European leaders said the Greek vote will also decide whether or not Greece will remain in the Euro-zone area. As a result, the Euro was dampened again and long investors of LME copper closed positions rapidly. Sell-off pressures tend to be on the rise while investors are awaiting results of G20 Meeting to be held this evening, with panic and cautious sentiment dominating the market.