SMM Brief on SHFE Copper Prices (2013-11-15)

SHANGHAI, Nov. 15 (SMM) – Copper for delivery in January on the SHFE, the most active one, opened RMB 10/mt higher at RMB 50,530/mt on Friday. Investors closing short positions and a 1.7% jump of the Shanghai Composite Index pushed the red metal up. Nevertheless, SHFE 1401 copper contract fell back after meeting resistance at RMB 50,830/mt, and wiped out previous gains in the afternoon session to head for RMB 50,060/mt, dragged down by falling LME copper and growing bear positions in distant copper contracts. The contracted lost RMB 440/mt or 0.87% to end the day at RMB 50,080/mt. Trading volumes ballooned 23,860 lots, but positions dropped 9,234 lots. Further price declines are on the horizon for the red metal.