SMM Brief on SHFE Copper Prices (2014-3-18)

SHANGHAI, Mar. 18 (SMM) – The most active SHFE copper contract prices started higher at RMB 44,770/mt in Monday’s night session, boosted by LME copper prices finding technical support at USD 6,400/mt for a fourth consecutive trading day. The contract prices fell slightly to test support at RMB 44,420/mt after touching a high of RMB 44,830/mt, and finished up RMB 20/mt at RMB 44,580/mt. During the trading hours, trading volumes edged down a touch to 298,485 lots, while positions gained by 8,886 lots. SHFE copper prices handily surged on Tuesday above the RMB 45,000/mt mark, helped by a strong rally in LME copper prices, and later peaked at RMB 45,350/mt. During the afternoon trading session, the red metal came off below RMB 45,000/mt, and ended up RMB 340/mt or 0.76% at RMB 44,900/mt on Tuesday. Trading volumes shrunk by 38,728 lots, and positions increased by 914 lots. SHFE copper prices have found temporary support at the 5-day moving average, and are likely to trend higher in the near future.