SMM Brief on SHFE Copper Prices (2013-2-6)

SHANGHAI, Feb. 6 (SMM) – With LME copper hovering around current levels overnight, SHFE 1305 copper contract, the most active one, opened flat at RMB 59,850/mt Wednesday. The contract continued challenging RMB 60,000/mt following the opening due to buying support, with a high at RMB 60,160/mt, but edged down to around the RMB 60,000/mt point after suffering technical resistance. SHFE copper prices came under pressure near the midday when LME copper lost ground, and touched an intraday low of RMB 59,700/mt at the tail of trading. SHFE 1305 copper contract ended RMB 10/mt or 0.02% lower at RMB 59,840/mt, with trading volumes and positions down 253,000 lots and 5,346 lots, respectively. Despite support at the 5-day moving average, copper trading remained muted. As such, SHFE copper prices are unlikely to break existing trading range effectively for the near future.