SMM Brief on SHFE Copper Prices (2013-4-8)

SHANGHAI, Apr. 8 (SMM) – Weak LME copper prices during the Chinese Qingming holiday caused SHFE 1308 copper contract to open RMB 330/mt lower at RMB 53,990/mt on Monday. After its opening, the most active SHFE copper contract climbed on rising Shanghai Composite Index, but met resistance at the 5-day moving average. In the afternoon, SHFE copper for August delivery touched a high of RMB 54,620/mt due to position liquidation, and finally settled up RMB 270/m or 0.5% at RMB 54,590/mt. Trading volumes and positions of SHFE 1308 copper contracts decreased 30,552 lots and 430 lots, respectively. Total trading volumes and positions contracted 129,000 lots and 8,572 lots, respectively. It remains to be seen whether SHFE copper will extend gains.