SMM Brief on SHFE Copper Prices on Jan. 11

SHANGHAI, Jan. 11 (SMM) –As LME copper prices surged overnight, SHFE 1203 copper contract prices, the most active one, opened up by RMB 620/mt at RMB 56,220/mt Wednesday. SHFE three-month copper contract prices moved higher after a high open as both long and short investors closed positions during the trading day, with an intraday high at RMB 56,950/mt. Finally, SHFE 1203 copper contract prices closed at RMB 56,860/mt, up RMB 1,260/mt or 2.27%. Positions for SHFE 1203 copper contracts were down 5,248 lots, and trading volumes were down 53,834 lots. The fluctuating band of SHFE copper prices already stood above all daily moving averages, but investors lacked confidence in keeping up with rising prices. Therefore, SHFE copper prices still face great selling pressures at highs, especially ahead of Thursday’s release of China’s important economic data, and a probable drop in GDP is likely to dampen copper prices.