SMM Brief on SHFE Copper Prices (2012-10-24)

SHANGHAI, Oct. 24 (SMM) – As LME copper prices extended losses overnight, SHFE 1301 copper contract, the most active one, started RMB 310/mt down at RMB 57,260/mt Wednesday. Following the opening, as some shorts closed positions, the contract rose temporarily but then fell after meeting resistance at RMB 57,500/mt. Moving narrowly around the daily moving average during the day, SHFE copper prices touched a low at RMB 57,110/mt with a fluctuating band of only RMB 300/mt. SHFE 1301 copper contract rose to a high of RMB 57,580/mt at the tail of trading, but still ended RMB 70/mt or 0.12% lower at RMB 57,500/mt. Trading volumes and positions for the most active copper contract were down 14,910 lots and 14,270 lots, respectively, while those for SHFE 1302 copper contract increased by 32,034 lots and 14,238 lots, respectively. The shift of the most active copper contract is expected to be completed Thursday. Domestic copper prices proved more resistant to declines than LME copper, and owing to Chinese economic data, buying increased some at the lows. But copper price fluctuations will probably become more severe over the near term.