SMM Brief on SHFE Copper Prices on Feb. 3

SHANGHAI, Feb. 3 (SMM) –As LME copper prices remained weak overnight, SHFE 1204 copper contract prices, the most active one, opened RMB 360/mt lower at RMB 59,500/mt Friday, and fluctuated around this price mark after the opening. Short investors then made profit-taking, helping SHFE three-month copper contract prices move higher. In the afternoon business, as Chinese stock markets reversed declines and increased by 1%, and as LME copper prices rallied to near USD 8,400/mt, SHFE three-month copper contract prices rose but still met resistance at RMB 60,000/mt. Owing to position closings at the tail of trading, SHFE three-month copper contract prices lost support and retreated to early trading session levels, with an intraday high at RMB 60,060/mt. Finally, SHFE 1204 copper contract prices closed at RMB 59,820/mt, down RMB 40/mt or 0.07%. Positions for SHFE 1204 copper contracts were down 9,568 lots, and trading volumes were down 90,464 lots. SHFE copper prices will continue to fluctuate due to great pressures at the 5- and 10-day moving averages.