SMM Brief on SHFE Copper Prices (2013-3-20)

SHANGHAI, Mar. 20 (SMM) – SHFE 1307 copper contract prices opened lower at RMB 54,550/mt on March 20 as the low-end LME copper prices slipped overnight due to sell-off. After the opening, LME copper prices rebounded, causing a large number of shorts on the SHFE copper market to close positions, sending the most active SHFE copper contracts up by nearly RMB 700/mt. The Shanghai Composite Index gained 2.66%. In the afternoon, SHFE copper for July delivery moved within RMB 55,200-55,400/mt, with the high-end price at RMB 55,470/mt. Finally, SHFE 1307 copper contract prices finished RMB 310/mt or 0.56% higher at RMB 55,350/mt. Positions were down 24,600 lots to 249,816 lots, while trading volumes were up 79,660 lots to 388,670 lots. Markets are eyeing the US Federal Reserve’s policy statement due tonight and it remains to be seen whether the most active SHFE copper contract will be able to find support at RMB 55,000/mt.