SMM Copper Weekly Price Review and Forecast (14-18 Oct. 2013)

SHANGHAI, Oct. 14 (SMM) – Although SHFE copper prices followed LME copper trends and fell 2.4% from RMB 52,600/mt to RMB 51,300/mt after the Chinese National Day holiday, Chinese A-shares rose by 2.5%, which helped limit losses for SHFE copper, and helped the SHFE/LME copper prices ratio later recover to 7.25. SHFE 1401 copper contract became the most active contract last week. Despite selling pressure for back month contracts, investors remained relatively cautious when sold at low prices. Traded volumes for SHFE copper contracts shrank by some 40,000 lots and positions were down about 20,000-30,000 lots. Trading was thin early last week, but turned more active later in the week.