SMM Brief on SHFE Copper Prices (2013-10-9)

SHANGHAI, Oct. 9 (SMM) – The most active copper contract on the Shanghai Futures Exchange (SHFE), SHFE 1312 copper contract, opened RMB 40/mt lower at RMB 52,400/mt on Wednesday, pulled down by falling LME copper on Tuesday. The contract traded in a narrow range after starting the day, with the high-end price at RMB 52,440/mt. SHFE 1401 copper contract shifted to the new most active contract near mid-day as LME copper’s retreat from USD 7,200/mt triggered massive selloff in SHFE back-month copper contracts. SHFE copper for January delivery followed LME copper down to RMB 51,750/mt before rebounding to near RMB 51,850/mt. SHFE 1312 copper contract closed down RMB 600/mt or 1.14% at RMB 51,840/mt. SHFE 1401 copper contract ended RMB 680/mt or 1.3% lower at RMB 51,680/mt, with day’s high and low at RMB 52,350/mt and 51,580/mt, respectively. Total trading volumes and positions burgeoned by 305,000 lots and 53,408 lots, respectively. January copper on the SHFE is expected to test support at RMB 51,500/mt.