SMM Copper Market Daily Review (2013-7-2)

SHANGHAI, Jul. 3 (SMM) – Rising LME copper overnight helped SHFE 1310 copper contract open RMB 750/mt higher at RMB 49,790/mt on Tuesday. After its opening, the most active SHFE copper contract stayed above the daily moving average most of the time, and later broke through RMB 50,000/mt thanks to a wave of buying. In the afternoon, LME copper rose further, and China’s A-shares climbed to 2,000 points. Meanwhile, shorts were forced to close positions after SHFE copper broke through RMB 50,000/mt. As a result, SHFE copper for October delivery advanced to RMB 50,200/mt, but then pulled back to an intraday low of RMB 49,640/mt. The most actively traded SHFE copper contract bounced back from lows at the tail of the session before closing at RMB 50,100/mt, up RMB 1,060/mt or 2.16%. Trading volumes and positions of SHFE 1310 copper contracts were off 89,406 lots and 52,088 lots, respectively. Trading volumes and positions of SHFE 1311 copper contracts increased 86,594 lots and 21,244 lots, respectively. Market bearish sentiment faded following the rally in copper prices. That being said, resistance at RMB 50,300/mt remains strong.