SMM Brief on SHFE Copper Prices (2013-4-23)

SHANGHAI, Apr. 23 (SMM) – With LME copper being mired overnight, SHFE 1308 copper contract opened RMB 230/mt lower at RMB 49,500/mt on Tuesday. After its opening, worse-than-expected HSBC’s China PMI sent the Shanghai Composite Index plunging 2.5%, weighing down the most active SHFE copper contract. However, more investors bought SHFE forward-month copper contracts, helping SHFE copper for August delivery move within RMB 49,000-49,500/mt in the morning session, with its high-end price at RMB 50,730/mt. In the afternoon, panic selling and the retreat of LME copper from USD 6,800/mt drove SHFE copper for delivery in four months down to RMB 48,460/mt. Finally, the most active SHFE copper contract closed down RMB 650/mt or 1.31% at RMB 49,080/mt. Trading volumes and positions of SHFE 1308 copper contract increased 158,000 lots and 12,062 lots, respectively. Total trading volumes and positions were also up 306,000 lots and 34,426 lots.