SMM Brief on SHFE Copper Prices on Feb. 22

SHANGHAI, Feb. 22 (SMM) –As LME copper prices closed with gains overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 930/mt up at RMB 60,690/mt Wednesday. The SHFE copper contract for delivery in May came under pressure at the daily moving average immediately after the opening, and only touched RMB 60,810/mt at the high-end due to light market activity. However, Chinese stock markets surged to 2,400 points during the trading session, providing solid support for the low-end SHFE copper prices, which therefore fluctuated in a narrow band between RMB 60,300-60,600/mt. Finally, SHFE 1205 copper contract prices closed at RMB 60,490/mt, up RMB 730/mt or 1.22%. Positions for SHFE 1205 copper contract were down 4,778 lots, while trading volumes were down 150,000 lots. Most long and short investors had little interest in keeping up with rising copper prices, opting instead to wait on the sidelines. SHFE copper prices are expected to test RMB 60,300-60,400/mt over the near term.