SMM Brief on SHFE Copper Prices (2013-1-22)

SHANGHAI, Jan. 22 (SMM) – With LME copper holding flat overnight, SHFE 1304 copper contract, the most active one, started RMB 20/mt up at RMB 58,280/mt Tuesday. The contract trended higher following the opening amid buying support. As Japan’s central bank introduced new positive policy near the midday, LME copper prices broke resistance at USD 8,100/mt and helped SHFE copper surge through RMB 58,500/mt, up to a high of RMB 58,780/mt in the afternoon before suffering pressures. SHFE 1304 copper contract settled RMB 430/mt or 0.74% higher at RMB 58,690/mt, with trading volumes up 40,354 lots but positions down 8,006 lots. Trading volumes and positions for SHFE 1305 copper contract added by 101,000 lots and 35,500 lots, respectively. The most active copper contract is expected to shift to SHFE 1305 copper contract Wednesday. Consolidating support at RMB 58,000/mt, SHFE copper prices already stood above all recent moving averages during the day and are likely to rebound for the near future.