SMM Brief on SHFE Copper Prices (2013-3-13)

SHANGHAI, Mar. 13 (SMM) – With LME copper rebounding significantly overnight, the most active SHFE 1306 copper contract opened RMB 310/mt up at RMB 56,910/mt Wednesday. The contract tested a low at RMB 56,750/mt before stabilizing, and broke resistance at the RMB 57,000/mt point, driven by rising LME copper. However, SHFE copper prices then hovered narrowly at current levels after suffering resistance at RMB 57,160/mt. In the afternoon, as the Shanghai Composite Index fell by more than 1%, SHFE copper prices declined below the daily moving average of RMB 56,950/mt. Giving up some of daily gains, SHFE 1306 copper contract closed at RMB 56,850/mt, still up RMB 250/mt or 0.44%, with trading volumes and positions down 21,412 lots and 14,058 lots, respectively. Short and long investors chose to close positions when SHFE copper stabilized. SHFE copper prices won temporary support at the 10-day moving average, but still suffered high pressures.