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

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

Price Review & Forecast 09:20:45AM Oct 15, 2013 Source:SMM

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.

 
In spot copper markets, transportation in east China was greatly impeded by typhoon on the first trading day after the week-long holiday, dampening copper transactions. Price gap between SHFE 1310 and 1311 copper contracts remained at RMB 100/mt with the approach of delivery week. Cargo holders moved goods at high prices, but increasing supply of imported copper limited rise in backwardation for spot copper. With the influence of typhoon fading later last week, stock replenishments downstream improved, and the relatively low backwardation for high-grade copper attracted some traders to purchase.
 

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

Price Review & Forecast 09:20:45AM Oct 15, 2013 Source:SMM

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.

 
In spot copper markets, transportation in east China was greatly impeded by typhoon on the first trading day after the week-long holiday, dampening copper transactions. Price gap between SHFE 1310 and 1311 copper contracts remained at RMB 100/mt with the approach of delivery week. Cargo holders moved goods at high prices, but increasing supply of imported copper limited rise in backwardation for spot copper. With the influence of typhoon fading later last week, stock replenishments downstream improved, and the relatively low backwardation for high-grade copper attracted some traders to purchase.