SMM Brief on SHFE Copper Prices on Jan. 13

SHANGHAI, Jan. 13 (SMM) –As LME copper prices surged overnight, SHFE 1203 copper contract prices opened up by RMB 830/mt at RMB 57,880/mt Friday. SHFE three-month copper contract prices suffered position closing immediately after the opening, and basically fluctuated around the daily moving average of RMB 57,800/mt in the morning business, with a low at RMB 57,480/mt, as Chinese stock markets closed down by 1.5%. In the afternoon business, as LME copper prices rallied to USD 8,000/mt, SHFE three-month copper contract prices climbed to RMB 58,220/mt after breaking through RMB 58,000/mt. Finally, SHFE 1203 copper contract prices closed at RMB 58,000/mt, up RMB 950/mt, or a gain of 1.67%. Positions for SHFE 1203 copper contracts were up 31,856 lots, and trading volumes were up 196,000 lots. SHFE 1204 copper prices will likely become the most actively-traded copper contracts. Technical factors will restrict SHFE copper price gains in the coming week.