SMM Brief on SHFE Copper Prices on Feb. 8

SHANGHAI, Feb. 8 (SMM) –The most actively-traded SHFE 1204 copper contract opened RMB 20/mt higher at RMB 60,300/mt Wednesday. SHFE three-month copper contract prices fluctuated around RMB 60,400/mt after the opening. In the afternoon session, as Chinese stock markets surged by 2.5%, and as LME copper prices rallied to above USD 8,600/mt, SHFE three-month copper contract prices broke resistance of RMB 61,000/mt and climbed to a high of RMB 61,470/mt. Finally, SHFE 1204 copper contract prices closed at RMB 61,390/mt, up RMB 1,110/mt or a gain of 1.84%. Positions for SHFE 1204 copper contracts were down 17,440 lots, and trading volumes were down 20,330 lots, while positions and trading volumes for SHFE 1205 copper contracts were up 36,798 lots and 152,000 lots, respectively. SMM believes the shift of the most actively-traded copper contract will be completed Thursday. SHFE copper prices were well support at the low-end, and technical indicators continued to point upside following temporary struggle.