SMM Brief on SHFE Copper Prices (2014-3-6)

SHANGHAI, Mar. 6 (SMM) – The most active SHFE copper contract started RMB 10/mt higher at RMB 49,230/mt, and then rose as high as RMB 49,430/mt at Wednesday’s night session. The red metal later fell to RMB 48,970/mt, hovering around RMB 49,240/mt, and finally closed down RMB 170/mt at RMB 49,140/mt. During the night session, trading volumes shrunk by more than 238,000 lots, and positions expanded by over 7,000 mt. SHFE copper prices opened at RMB 49,210/mt on Thursday, and later slipped to an intraday day low of RMB 48,970/mt due to the lack of impetus. During the afternoon trading session, SHFE copper rallied to RMB 49,260/mt, and finished down RMB 170/mt or 0.34% at RMB 49,140/mt. Trading volumes shed 75,574 lots to 255,000 lots, and positions decreased 2,546 lots to 275,000 lots. Positions for SHFE 1406 copper contract rose 12,926 lots to 193,000 lots, and the contract is likely to become the most active SHFE copper contract next week. SHFE copper prices faced resistance at the 10-day moving average, but found support at the 5-day moving average on Thursday.