SMM Brief on SHFE Copper Prices (2013-4-11)

 SHANGHAI, Apr. 11 (SMM) – SHFE 1308 copper contract opened RMB 350/mt lower at RMB 54,900/mt on Thursday, dragged down by weak LME copper prices overnight. After its opening, the most active copper contract jumped above RMB 55,000/mt on dip-buying, but failed in its attempts to advance further after climbing to near the 20-day moving average owing to strong technical resistance. In the afternoon, the Shanghai Composite Index declined, sending SHFE copper for August delivery below RMB 55,000/mt. Finally, August copper on the SHFE closed down RMB 360/mt or 0.65% at RMB 54,890/mt, with its high-end and low-end price at RMB 55,310/mt and RMB 54,870/mt , respectively. Trading volumes shrank 19,840 lots, while positions increased 8,226 lots. Great volatility in SHFE copper prices is expected in the near term.