SMM Brief on SHFE Copper Prices on Oct. 11

SHANGHAI, Oct. 11 (SMM) – As LME copper prices remained weak overnight, SHFE 1301 copper contract, the most active one, started RMB 110/mt down at RMB 58,750/mt Thursday. Following the opening, the contract still remained weak, but a lot of investors began buying forward copper contracts when copper prices fell to a low at RMB 58,500/mt. SHFE copper prices rose considerably and broke resistance at RMB 59,000/mt before the midday and touched a high at RMB 59,200/mt. In the afternoon, falling Chinese A-shares caused SHFE copper prices to lurch narrowly around the RMB 59,000/mt point and narrowed daily gains at the tail of trading. SHFE 1301 copper contract settled at RMB 58,980/mt, still up RMB 120/mt or 0.2%, with trading volumes up 88,526 lots but positions down 9,266 lots. Trading volumes and positions for SHFE 1302 copper contract added by 19,806 lots and 8,288 lots respectively. SHFE copper prices still suffered upside pressure but should move around the 20-day moving average over the near term owing to buying support, and will continue to test support at the low of RMB 58,300/mt.