SMM Brief on SHFE Copper Prices (2013-3-7)

SHANGHAI, Mar. 7 (SMM) – With LME copper prices extending losses overnight, the most active SHFE 1306 copper contract opened RMB 310/mt down at RMB 56,560/mt Thursday. The contract suffered resistance at the 5-day moving average following the opening and touched a high at merely RMB 56,600/mt. SHFE copper prices basically fluctuated at lows during the day and came under pressure at the daily moving average, with a low at RMB 56,240/mt. However, SHFE 1306 copper contract followed LME copper to pare some of declines at the tail of trading, and closed RMB 340/mt or 0.6% lower at RMB 56,530/mt, with trading volumes and positions down 6,476 lots and 1,390 lots, respectively. Total trading volumes for all SHFE copper contracts increased by 2,260 lots, and total positions added by 9,472 lots. As long and short investors shifted to the sidelines at prices above RMB 56,000/mt, SHFE copper prices will continue to consolidate at lows for the near future.