SMM Brief on SHFE Copper Prices on Mar. 2

SHANGHAI, Mar. 2 (SMM) –As LME copper prices closed with strong gains overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 460/mt up at RMB 60,910/mt Friday. After the opening, SHFE copper prices moved higher due to position closings and broke resistance at RMB 61,000/mt before the midday as Chinese stock prices rose. However, due to resistance at RMB 61,390/mt and as long investors made profit-taking, SHFE copper prices failed to break the resistance at RMB 61,000/mt in the afternoon session, fluctuating narrowly around RMB 61,200/mt. Finally, SHFE 1205 copper contract prices closed at RMB 61,330/mt, up RMB 880/mt or 1.46%. Positions for SHFE 1205 copper contract were down 14,274 lots, and trading volumes were down 62,988 lots. Positions and trading volumes for SHFE 1206 copper contract were up 30,886 lots and 61,492 lots, respectively, highlighting the shift of the most actively-traded copper contract. SHFE copper prices have increased above the 5-day moving average, with upside momentum growing over the near term.