SMM Brief on SHFE Copper Prices (2013-10-21)

SHANGHAI, Oct. 21 (SMM) – Copper for delivery in January on the Shanghai Futures Exchange (SHFE), the most active one, opened RMB 20/mt lower at RMB 52,130/mt on Monday, as LME copper erased gains last Friday. The contract hovered around the daily moving average for most time of the morning session, meeting resistance at RMB 52,200/mt due to selloff. However, the red metal bounced back above RMB 52,000/mt shortly after slipping to RMB 51,850/mt, helped by a 1.6% rally in the Shanghai Composite Index. In the afternoon session, SHFE 1401 copper contract followed LME copper up to an intraday high of RMB 52,380/mt before finishing at RMB 52,330/mt, up RMB 180/mt or 0.35%. Trading volumes dropped 16,226 lots, while positions grew 6,312 lots. Some investors may close positions following continuous rise in copper prices.