SMM Brief on SHFE Copper Prices (2013-2-19)

SHANGHAI, Feb. 19 (SMM) – With LME copper extending losses overnight, SHFE 1305 copper contract, the most active one, opened RMB 330/mt down at RMB 58,840/mt Tuesday. The contract continued to slide following the opening, but stabilized after gaining temporary support at the 30-day moving average. SHFE copper prices gradually pared daily losses as investors bought at lows, but with strong resistance at around RMB 59,100/mt. In the afternoon, as LME copper dropped from highs and lost USD 8,100/mt, and since the Shanghai Composite Index dipped below 2,400, SHFE copper prices slipped below the daily moving average and touched a low at RMB 58,700/mt. SHFE 1305 copper contract settled RMB 390/mt or 0.66% lower at RMB 58,780/mt, with trading volumes down 31,364 lots and positions up 1,938 lots. As SHFE copper market trading sentiment abated, and since LME copper prices completely lost the 30-day moving average, SHFE copper prices are likely to get back to a downside track after testing support at the 30-day moving average for the immediate future.