SMM Brief on SHFE Copper Prices on Feb. 2

SMM Insight 04:38:00PM Feb 02, 2012 Source:SMM

SHANGHAI, Feb. 2 (SMM) –As LME copper prices pared losses overnight, SHFE 1204 copper contract prices, the most active one, opened RMB 190/mt higher at RMB 60,000/mt Thursday. After the opening, SHFE three-month copper contract prices still suffered selling pressures from short investors at above RMB 60,000/mt, and therefore slipped rapidly after fluctuating around the price mark briefly. In the afternoon session, as Chinese stock markets stood steadily at 2,300 points and closed 2% higher, SHFE three-month copper contract prices gained support at around the 10-day moving average of RMB 59,500/mt, and rallied to around RMB 60,000/mt at the tail of trading, with an intraday low at RMB 59,520/mt. Finally, SHFE 1204 copper contract prices closed at RMB 59,880/mt, up RMB 70/mt or 0.12%. Positions for SHFE 1204 copper contracts were down 3,720 lots, while trading volumes were up 32,168 lots. SHFE copper prices are likely to remain weak due to the weakening bullish sentiment.
 

SMM Brief on SHFE Copper Prices on Feb. 2

SMM Insight 04:38:00PM Feb 02, 2012 Source:SMM

SHANGHAI, Feb. 2 (SMM) –As LME copper prices pared losses overnight, SHFE 1204 copper contract prices, the most active one, opened RMB 190/mt higher at RMB 60,000/mt Thursday. After the opening, SHFE three-month copper contract prices still suffered selling pressures from short investors at above RMB 60,000/mt, and therefore slipped rapidly after fluctuating around the price mark briefly. In the afternoon session, as Chinese stock markets stood steadily at 2,300 points and closed 2% higher, SHFE three-month copper contract prices gained support at around the 10-day moving average of RMB 59,500/mt, and rallied to around RMB 60,000/mt at the tail of trading, with an intraday low at RMB 59,520/mt. Finally, SHFE 1204 copper contract prices closed at RMB 59,880/mt, up RMB 70/mt or 0.12%. Positions for SHFE 1204 copper contracts were down 3,720 lots, while trading volumes were up 32,168 lots. SHFE copper prices are likely to remain weak due to the weakening bullish sentiment.