SMM Brief on SHFE Copper Prices on Apr. 18

SHANGHAI, Apr. 18 (SMM) –The most-traded SHFE copper contract for delivery in July opened RMB 440/mt up at RMB 57,260/mt Wednesday, as LME copper prices rallied overnight. SHFE copper prices moved lower after the opening, negatively affected by LME copper price movement, testing RMB 57,000/mt and falling to a low at RMB 56,910/mt. Near the midday, the Shanghai Composite Index surged by almost 2%, sending SHFE copper prices up to near RMB 58,000/mt. However, SHFE copper prices met resistance near this price mark, while short covering emerged. SHFE copper prices only touched a high at RMB 57,960/mt in the afternoon session and were pressured down below RMB 58,000/mt as new short investors entered the market, posting much weaker performance than LME copper. Finally, SHFE 1207 copper contract prices still closed RMB 1,000/mt or 1.76% higher at RMB 57,820/mt. Positions for SHFE 1207 copper contracts were down by 14,322 lots, while trading volumes were up 242,000 lots. Positions for SHFE 1208 copper contracts were up 10,790 lots. SHFE copper prices need support from LME copper to break resistance at the 5-day moving average.