SMM Brief on SHFE Copper Prices (2014-3-10)

SHANGHAI, Mar. 10 (SMM) – Dragged down by a plunge in LME copper prices, the most active SHFE copper contract sank to RMB 46,670/mt after gapping lower at RMB 48,130/mt during last Friday’s night session. The red metal closed down RMB 2,300/mt at RMB 46,830/mt. During the night session, positions for the most active SHFE copper contract gained 10,264 lots, and total positions increased 69,374 lots. A large number of investors went bargain-hunting for distant-month copper contracts. SHFE copper prices suspended trading at RMB 46,670/mt, and ended down RMB 2,460/mt at RMB 46,670/mt against the backdrop of a more than 2.8% drop in the Shanghai Composite Index. Trading volumes and positions rose by 212,000 lots and 5,084 lots, respectively, for SHFE 1405 copper contract, while total trading volumes and positions expanded by 480,000 lots and 60,248 lots, respectively. The most active SHFE copper contract faced massive sell-offs on Monday, and is unlikely to pick up in the future, with bearish technical indicators.