SMM Brief on SHFE Copper Prices (2013-4-17)

SHANGHAI, Apr. 17 (SMM) – LME copper recovered losses last night, helping SHFE 1308 copper contract start the day RMB 600/mt higher at RMB 53,120/mt on Wednesday. After its opening, the most active SHFE copper contract touched a high of RMB 53,260/mt, but later fell back. Shorts continued to increase positions, coupled with a pullback in the Shanghai Composite Index, causing SHFE copper for August delivery to surrender all the gains recorded during the day. SHFE copper for delivery in four months dropped further to RMB 53,160/mt at the tail of trading, and finally closed down RMB 290/mt or 0.55% at RMB 52,230/mt. Trading volumes decreased 61,616 lots, but positions increased 57,544 lots. Violent swing in SHFE copper prices are expected in the future.