SMM Brief on SHFE Copper Prices (2013-1-15)

SHANGHAI, Jan. 15 (SMM) – As LME copper prices lowered to test USD 8,000/mt, SHFE 1304 copper contract, the most active one, started RMB 260/mt down at RMB 58,220/mt Tuesday. The contract hovered narrowly around RMB 58,200/mt following the opening, with long and short investors conducting severe struggles. However, LME copper prices lost USD 8,000/mt point in the afternoon, causing SHFE copper prices to slip below RMB 58,000/mt, down to test RMB 57,680/mt. SHFE 1304 copper contract finally ended RMB 780/mt or 1.33% lower at RMB 57,700/mt, with trading volumes and positions up 44,656 lots and 8,216 lots, respectively. Falling to levels seen in late December 2012 and with technical indicators pointing down, SHFE copper prices found weak support at the 20-day moving average and will test RMB 58,000/mt repeatedly for the near future.