SMM Brief on SHFE Copper Prices (2013-2-25)

SHANGHAI, Feb. 25 (SMM) –As LME copper reversed increases last Friday, SHFE 1305 copper contract, opened RMB 340/mt down at RMB 57,280/mt Monday. The contract hovered cautiously around the daily moving average following the opening and suffered resistance at RMB 57,420/mt. Later, the HSBC China PMI came in softer than expected and caused the Shanghai Composite Index to fall from previous highs. SHFE copper prices were thus depressed and slid to a low of RMB 57,050/mt, but rallied above the daily moving average at the tail of trading. SHFE 1305 copper contract settled RMB 340/mt or 0.59% lower at RMB 57,280/mt. SHFE 1306 copper contract ended RMB 380/mt or 0.66% down at RMB 57,320/mt, with a high at RMB 57,520/mt and low at RMB 57,090/mt. Trading volumes and positions for SHFE 1305 copper contract decreased by 5,020 lots and 20,000 lots, respectively, but those for SHFE 1306 copper contract increased by 37,048 lots and 31,746 lots, respectively. The most active copper contract was shifted to SHFE 1306 copper contract during the day. SHFE copper prices had no noticeable signs of stop falling and still face downside pressure over the short term.