SMM Brief on SHFE Copper Prices (2013-3-29)

SHANGHAI, Mar. 29 (SMM) – LME copper tumbled overnight due to position liquidation, causing SHFE 1307 copper contract to open RMB 610/mt lower at RMB 54,900/mt on Friday. After its opening, the most active SHFE copper contract jumped to an intraday high of RMB 55,650/mt thanks to a wave of buying. SHFE copper for July delivery hovered near RMB 55,200/mt due to strong resistance at the 5-day and 10-day moving averages in the morning. In the afternoon, the most-traded SHFE copper contract fell below RMB 55,000/mt to an intraday low of RMB 54,720/mt. Finally, SHFE 1307 copper contract ended the day down RMB 680/mt or 1.23% at RMB 54,830/mt. Trading volumes increased 4,510 lots, while positions were also up 8,204 lots. Further price declines are expected.