SMM Brief on SHFE Copper Prices (2013-3-21)

SHANGHAI, Mar. 21 (SMM) – With LME copper rising overnight, SHFE 1307 copper contract prices gapped RMB 350/mt higher at RMB 55,450/mt on March 21. In the morning session, HSBC’s China preliminary manufacturing PMI for March beat forecasts, pushing LME and SHFE copper up. Combined with the redound in the Shanghai Composite Index, the most active SHFE copper contract prices broke through RMB 56,000/mt, and later jumped even higher to RMB 56,630/mt on massive short-covering and dip-buying. Finally, SHFE 1307 copper contract prices finished RMB 680/mt or 1.23% higher at RMB 55,780/mt. Trading volumes increased 58,712 lots, while positions decreased 268,880 lots. SHFE copper for July delivery should rise further in the near term.