SMM Brief on SHFE Copper Prices (2013-3-4)

SHANGHAI, Mar. 4 (SMM) – As LME copper prices extended declines last Friday, the most active SHFE 1306 copper contract opened RMB 200/mt down at RMB 56,710/mt Monday. As the Shanghai Composite Index dived by 3.7%, and since LME copper prices lost USD 7,700/mt again, SHFE copper prices dropped all the way following the opening, and touched a low at RMB 56,060/mt in the afternoon. However, the falling momentum eased after SHFE copper prices won technical support. SHFE 1306 copper contract settled RMB 600/mt or 1.05% lower at RMB 56,310/mt, with trading volumes and positions up 9,428 lots and 5,262 lots, respectively. With bearish sentiment growing, SHFE copper prices already lost ground for two straight days and are likely to dip further over the short term.