SMM Brief on SHFE Copper Prices on Dec. 26

SHANGHAI, Dec. 26 (SMM) –As LME copper prices closed with gains last Friday, SHFE 1203 copper contract prices, the most active one, opened slightly up by RMB 400/mt at RMB 55,870/mt Monday. The LME market was closed for the Christmas holiday. Without guidance from LME copper prices, SHFE three-month copper contract prices were mainly impacted from Chinese stock markets and capitals. As Chinese stock markets met resistance at 2,200 points, and as very fewer short-term long and short investors chose to enter the market during the whole trading day, SHFE three-month copper contract prices moved lower after a high open, with the highest price only reaching RMB 55,940/mt. In the afternoon business, SHFE three-month copper contract prices came under pressure at the daily moving average and slid to an intraday low at RMB 55,060/mt. Finally, SHFE 1203 copper contract prices settled at RMB 55,200/mt, down RMB 270/mt or 0.49%. Positions for SHFE 1203 copper contracts were up 1,608 lots, and trading volumes were up 4,558 lots. SHFE copper prices are unlikely to break out resistance at RMB 56,000/mt over the near term due to year-end tight cash flows.