SMM Brief on SHFE Copper Prices on Mar. 22

SHANGHAI, Mar. 22 (SMM) –The most actively-traded SHFE 1206 copper contract opened marginally higher by RMB 30/mt at RMB 60,300/mt Thursday. SHFE copper prices posted cautious movements around the opening price after the opening while awaiting the HSBC Flash China Manufacturing Purchasing Managers' Index (PMI), which was reported after 10:30 to fall sharply. As a consequence, LME copper prices lost USD 8,400/mt, and SHFE copper prices also slid rapidly below RMB 60,000/mt. SHFE copper prices were not seen to stop falling in the afternoon session, with a low already touching RMB 59,620/mt. Finally, the most actively-traded copper contract for June delivery closed RMB 520/mt or 0.86% down at RMB 59,750/mt. Positions and trading volumes for the most actively-traded copper contract increased by 5,062 lots, and 74,864 lots, respectively. It's worth noticing that positions for SHFE 1207 copper contract were up 17,616 lots. Selling pressures were growing during the whole trading day, so SHFE copper prices are expected to rely on LME copper prices to regain support at the RMB 60,000/mt mark.