SMM Brief on SHFE Copper Prices on Feb. 27

SHANGHAI, Feb. 27 (SMM) –As LME copper prices closed with gains last Friday, SHFE 1205 copper contract prices, the most active one, opened RMB 250/mt up at RMB 60,300/mt Monday. Tracking LME copper prices, the SHFE copper contract for delivery in May kept fluctuating around the opening price of RMB 60,300/mt during the whole trading day. In the afternoon session, as LME copper prices rose to above USD 8,500/mt rapidly owing to the falling US dollar, and as Chinese stock prices also increased, SHFE copper prices surged to an intraday high of RMB 60,730/mt after breaking out RMB 60,500/mt. However, as long investors made profit-taking at the tail of trading, SHFE 1205 copper contract prices lacked momentum to climb, and gradually pared some of the daily gains before finally ending at RMB 60,400/mt, still up RMB 350/mt or 0.58%. Positions for SHFE 1205 copper contracts were down 8,712 lots, and trading volumes were down 58,032 lots. SHFE copper prices still faced great resistance at above RMB 60,500/mt, keeping market activity cautious.