SMM Brief on SHFE Copper Prices on Mar. 14

SHANGHAI, Mar. 14 (SMM) –As LME copper prices closed significantly higher overnight, SHFE 1206 copper contract prices, the most active one, opened RMB 450/mt higher at RMB 61,330/mt Wednesday. SHFE copper prices suffered profit-taking immediately after the opening, and as prices met resistance at RMB 61,500/mt, short investors began to enter the market, which in turn dampened prices. In the afternoon business, Chinese stock markets dived by more than 150, and fell below 2,400, a slump of nearly 2.7%, dragging down SHFE copper prices, which gained falling momentum and moved away from the daily moving average, with the low-end price touching RMB 60,460/mt. Finally, SHFE 1206 copper contract prices closed at RMB 60,530/mt, down RMB 350/mt or 0.57%. Positions for SHFE 1206 copper contract were up 11,330 lots, and trading volumes were up 96,586 lots. With weak support at the 30-day moving average, SHFE copper prices will test the 5-day moving average of RMB 60,500/mt.