SMM Brief on SHFE Copper Prices (2013-1-30)

SHANGHAI, Jan. 30 (SMM) – With LME copper rallying from lows overnight, the most active SHFE 1305 copper contract opened RMB 300/mt up at RMB 58,990/mt Wednesday. The contract tested a low at RMB 58,860/mt before marching higher to RMB 59,300/mt owing to buying support, with a high at RMB 59,400/mt, up over RMB 600/mt. The Shanghai Composite Index rebounded by 1% during the day, which also gave support to SHFE copper prices. Despite narrowing gains slightly at the tail of trading, SHFE 1305 copper contract settled RMB 570/mt or 0.97% higher at RMB 59,260/mt, with trading volumes and positions up 8,438 lots and 24,630 lots, respectively. As long investors kept up with rising prices, SHFE copper prices are likely to rebound for the foreseeable future.