SMM Brief on SHFE Copper Prices (2013-1-21)

SHANGHAI, Jan. 21 (SMM) – With LME copper posting strong performance last Friday, SHFE 1304 copper contract, the most active one, started RMB 110/mt up at RMB 58,380/mt Monday. The contract fell immediately after the opening, so the opening price became the intraday high level. In the afternoon, as LME copper prices lost ground, SHFE copper prices slipped further and tested a low at RMB 58,150/mt at the tail of trading. Completely coming under pressure at the daily moving average, SHFE 1304 copper contract fluctuated by merely RMB 200/mt during the day and closed RMB 80/mt or 0.14% lower at RMB 57,190/mt. Trading volumes and positions for the most active copper contract decreased by 72,736 lots and 4,090 lots, respectively. Total trading volumes on the SHFE fell by 117,000 lots and 1,736 lots, respectively. With weak support at the 10-day moving average, long and short investors generally took a wait-and-see posture. SMM believes that SHFE copper prices are unlikely to move out of current fluctuating range over the short term.