SMM Brief on SHFE Copper Prices (2013-6-7)

SHANGHAI, Jun. 7 (SMM) – SHFE 1310 copper contract started Friday RMB 110/mt lower at RMB 52,980/mt as LME copper extended losses last night. After its opening, the most active SHFE copper contract swung violently before testing support at RMB 52,700/mt. Later, SHFE copper for October delivery bounced back to above the daily moving average, but was again weighed down by a 1.5% decline in the Shanghai Composite Index. SHFE 1310 copper contract did regain most of earlier losses at the tail of trading and hit RMB 53,150/mt due to position liquidation, and finally ended the day at RMB 53,050/mt, down RMB 40/mt or 0.08%. Trading volumes and positions contracted 101,000 lots and 12,460 lots, respectively. The most active SHFE copper contract moved between the 5-day and 20-day moving averages due to strong pre-holiday risk aversion, and LME copper prices during the three-day holiday in China will provide direction for post-holiday SHFE copper prices.