SMM Brief on SHFE Copper Prices on Jan. 16

SHANGHAI, Jan. 16 (SMM) –SHFE 1203 copper contract prices opened down by RMB 270/mt at RMB 57,570/mt Monday. SHFE three-month copper contract prices rebounded all the way and soared through RMB 58,000/mt in the afternoon business as LME copper prices rallied to USD 8,000/mt, with an intraday low only at RMB 57,290/mt. However, as Chinese stock markets continued to close down by more than 1%, the increase in SHFE three-month copper contract prices was still less than that for LME copper, with an intraday high at RMB 58,300/mt. Finally, SHFE 1203 copper contract prices ended at RMB 58,030/mt, up RMB 190/mt or 0.33%. SHFE 1204 copper contract prices closed at RMB 58,330/mt, up RMB 250/mt or 0.43%. Positions and trading volumes for SHFE 1203 copper contracts were down 17,766 lots, and 149,000 lots, respectively, while positions for SHFE 1204 copper contracts were up 982 lots, but trading volumes were down 4,316 lots, highlighting the completion of the most actively-traded copper contracts. Long investors continued to close positions at high price levels during the whole trading day, and short-term investors are awaiting guidance from China where GDP data will be released Tuesday.