SMM Brief on SHFE Copper Prices (2013-3-15)

SHANGHAI, Mar. 15 (SMM) – As LME copper prices drifted higher overnight, the most active SHFE 1306 copper contract opened RMB 320/mt up at RMB 56,900/mt Friday. The contract hovered around the daily moving average following the opening, with a fluctuating band of merely RMB 100/mt. However, as Chinese A-share market surged near the midday, SHFE copper prices broke resistance at RMB 57,000/mt and rose to an intraday high of RMB 57,280/mt, but then edged down to around the RMB 57,000/mt point. SHFE 1306 copper contract finally closed at RMB 57,120/mt, still up RMB 540/mt or 0.95%, with trading volumes and positions down 17,408 lots and 7,216 lots, respectively. The shift of the most active copper contract was still not finished. With low-end price increasing but pressure around the 20-day moving average growing, SHFE copper prices are likely to further fluctuate between the 10 and 20-day moving average over the short term.