SMM Brief on SHFE Copper Prices (2013-7-30)

SHANGHAI, Jul. 30 (SMM) – SHFE 1311 copper contract opened RMB 120/mt higher at RMB 49,230/mt on Tuesday as LME copper recovered losses overnight. The most active contract moved within a tight range of RMB 49,000-49,300/mt, but fell in the afternoon as LME copper dropped and due to selloff of SHFE back-month copper contracts.  SHFE copper for November delivery sank to an intraday low of RMB 48,860/mt at the tail of the session before closing at RMB 48,900/mt, down RMB 210/mt or 0.43%. Trading volumes of SHFE 1311 copper contracts decreased by 120,000 lots, but positions increased by 16,120 lots. Trading volumes of SHFE 1312 copper contracts decreased by 32,432 lots, but positions increased by 17,148 lots. Technical indicator remains bearish, so copper prices are expected to fall further.