SMM Brief on SHFE Copper Prices on Feb. 29

SHANGHAI, Feb. 29 (SMM) –SHFE 1205 copper contract prices, the most active one, opened RMB 150/mt up at RMB 60,880/mt Wednesday. After the opening, SHFE copper prices followed LME copper prices to rise stably after gaining support near the 5-day moving average of RMB 60,600/mt. In the afternoon session, as LME copper prices steadied above USD 8,600/mt, SHFE copper prices climbed further to a high RMB 61,150/mt after breaking out resistance at RMB 61,000/mt. At the tail of trading, SHFE copper prices suffered sell-offs and narrowed early gains since Chinese stock markets closed down by nearly 1%. Finally, SHFE 1205 copper contract prices closed at RMB 61,070/mt, up RMB 340/mt or 0.56%. Positions for SHFE 1205 copper contract were down 3,112 lots, but trading volumes were up 30,354 lots. SHFE copper prices are extremely likely to move higher, but will test RMB 61,000/mt repeatedly for the near future.