SMM Brief on SHFE Copper Prices (2013-2-4)

SHANGHAI, Feb. 4 (SMM) – With LME copper advancing significantly last Friday, the most active SHFE 1305 copper contract opened RMB 90/mt up at RMB 60,020/mt Monday. As shorts withdrew from the market after triggering the stop-loss limit, SHFE copper prices followed LME copper higher to RMB 60,270/mt, but gradually narrowed daily increases since longs made profit-taking. SHFE copper prices then slipped to around RMB 60,000/mt, with a low at RMB 59,900/mt. But SHFE 1305 copper contract still settled RMB 450/mt or 0.76% higher at RMB 59,950/mt, with trading volumes and positions up 13,414 lots and 666 lots, respectively. Total copper trading volumes on the SHFE added by 39,278 lots, while total positions decreased by 3,242 lots. Both longs and shorts exerted caution after SHFE copper prices rebounded to RMB 60,000/mt. Hence, SHFE copper prices posted weaker performance than LME copper and are likely to test the RMB 60,000/mt mark repeatedly for the immediate future.