SMM Brief on SHFE Copper Prices (2013-7-9)

SHANGHAI, Jul. 9 (SMM) – SHFE 1311 copper contract opened RMB 120/mt higher at RMB 48,860/mt on Tuesday as LME copper reversed losses overnight. China’s CPI rose more than expected in June. PPI, on the other hand, missed forecasts, but did fall at a slower pace, alleviating market pessimism. SHFE copper for November delivery briefly slid to RMB 48,650/mt after its opening, but then bounced back due to a wave of buying. In the afternoon, the most active SHFE copper contract jumped to RMB 49,260/mt, but retreated at the tail of the session. Finally, SHFE 1311 copper contract finished at RMB 48,910/mt, up RMB 170/mt or 0.35%. Trading volumes added 119,000 lots and positions were up 27,566 lots. SHFE copper prices are facing downward pressure as technical indicator is still pointing downward.