SMM Brief on SHFE Copper Prices on Jan. 17

SHANGHAI, Jan. 17 (SMM) –SHFE 1204 copper contract prices opened up by RMB 570/mt at RMB 58,580/mt Tuesday. SHFE three-month copper contract prices moved higher after a high open, as LME copper prices broke resistance at USD 8,200/mt owing to the plunging US dollar index. Combined with a surge of more than 4% in Chinese stock prices, SHFE three-month copper contract prices virtually fluctuated around RMB 60,000/mt in the afternoon session, with an intraday high touching RMB 60,090/mt. Finally, SHFE 1204 copper contract prices closed at RMB 59,930/mt, up RMB 1,920/mt, a gain of 3.31%. Positions for SHFE 1204 copper contracts were up 18,184 lots, and trading volumes were up 156,000 lots. Long investors were active building new positions during the whole trading day, causing SHFE copper prices to climb. However, technically, SHFE copper prices tend to meet upside resistance and are likely to test RMB 60,000/mt continuously for the foreseeable future.