SMM Brief on SHFE Copper Prices (2013-3-19)

SHANGHAI, Mar. 19 (SMM) – With LME copper prices stopped falling at the tail of trading yesterday, SHFE 1307 copper contract prices opened RMB 110/mt higher at RMB 55,430/mt on March 19. After the opening, SHFE copper for July delivery fell back to near Monday’s settlement price. In the afternoon, shorts entered the market, sending the most active SHFE copper contract to a low of RMB 54,710/mt. The most-traded SHFE copper contract did recover some losses at the tail of trading thanks to a rebound in the Shanghai Composite Index, and finally finished at RMB 54,910/mt, down RMB 370/mt or 0.67%. Trading volumes of SHFE 1307 copper contracts decreased 125,000 lots, but positions increased 36,674 lots. Short selling eased some, but shorts continued to dominate the market, putting downward pressure on copper prices.