SMM Brief on SHFE Copper Prices (2013-2-1)

SHANGHAI, Feb. 1 (SMM) – With LME copper giving up gains overnight, the most active SHFE 1305 copper contract opened slightly RMB 90/mt down at RMB 59,480/mt Friday. China’s official PMI came in softer than anticipated, but HSBC China manufacturing PMI rose to a fresh 2-year high. In this context, SHFE copper prices slipped following the opening and tested a low at RMB 59,310/mt. But in the afternoon, with the Shanghai Composite Index rebounding by 1.5% to 2,400, SHFE copper prices pared some of declines and touched an intraday high of RMB 59,680/mt after stabilizing above the daily moving average. SHFE 1305 copper contract settled RMB 100/mt or 0.17% higher at RMB 58,660/mt, with trading volumes down 22,420 lots but positions up 2,360 lots. Long investors became cautious towards keeping up with rising prices while markets awaited the US non-farm payrolls report. Once LME copper prices break upside pressures, SHFE copper prices will challenge new highs.