SMM Brief on SHFE Copper Prices (2013-2-5)

SHANGHAI, Feb. 5 (SMM) – With LME copper giving up some of increases overnight, SHFE 1305 copper contract, the most active one, opened RMB 340/mt down at RMB 59,710/mt Tuesday. The contract hovered around the daily moving average of RMB 59,850/mt following the opening, with a fluctuating band of merely RMB 300/mt. In the afternoon, as Chinese stock markets increased, SHFE copper prices challenged resistance at RMB 60,000/mt, but then suffered pressure at RMB 60,030/mt after long investors took profit-taking. Testing a low at RMB 59,700/mt, SHFE 1305 copper contract finally settled RMB 300/mt or 0.5% lower at RMB 59,750/mt, with trading volumes down 30,998 lots but positions up 370 lots. Long and short investors were wary of copper price corrections now that the resistance level at RMB 60,000/mt still can not be neglected.