SMM Brief on SHFE Copper Prices (2013-1-17)

SHANGHAI, Jan. 17 (SMM) – With LME copper prices slipping further overnight, SHFE 1304 copper contract, the most active one, started RMB 100/mt down at RMB 57,890/mt Thursday. The contract continued falling following the opening as LME copper prices remained weak, and since Chinese A-shares retreated 1%, with prices testing a low at RMB 57,570/mt. However, SHFE copper prices rallied above the daily moving average at the tail of trading after gaining technical support. SHFE 1304 copper contract finally ended RMB 250/mt or 0.43% lower at RMB 57,740/mt, with trading volumes decreasing 31,910 lots but positions adding by 118 lots. SHFE copper prices fluctuated lower and found weak support at the 30-day moving average. With wait-and-see sentiment growing and technical indicators pointing down, markets are pessimistic over future copper outlook.