SMM Brief on SHFE Copper Prices (2013-3-12)

SHANGHAI, Mar. 12 (SMM) – With LME copper rallying overnight, the most active SHFE 1306 copper contract opened slightly RMB 120/mt up at RMB 56,800/mt Tuesday. The contract suffered resistance at the 10-day moving average following the opening and reached a high at RMB 56,830/mt, with prices between the 5 and 10-day moving average in the morning. However, as the Shanghai Composite Index dived by nearly 2% in the afternoon, SHFE copper prices were dragged down to RMB 56,320/mt. SHFE 1306 copper contract finally settled RMB 340/mt or 0.6% lower at RMB 56,340/mt, with trading volumes up 21,492 lots but positions down 8,054 lots. The most active copper contract continued to shift. With technical indicators pointing downward and weak support at the 5-day moving average, SHFE copper prices are likely to test RMB 56,300/mt for the immediate future.