SMM Brief on SHFE Copper Prices (2014-4-23)

SHANGHAI, Apr. 23 (SMM) – The most active SHFE copper contract price leveled out during Tuesday’s night session after starting at RMB 46,580/mt, helped by a rebound in LME copper prices. The contract prices encountered resistance subsequently at RMB 46,700/mt, and closed up RMB 150/mt at RMB 46,640/mt. Traded volumes rose slightly to around 110,000 lots, while positions gained 13,192 lots. On Wednesday, SHFE copper prices rallied to RMB 46,860/mt at some point, but later pulled back immediately after the release of HSBC’s China manufacturing PMI which was still soft. The red metal hovered around RMB 46,600/mt during the afternoon trading session, falling as low as RMB 46,470/mt, but rebounded at the tail of the trading to close up RMB 300/mt, or 0.65%, at RMB 46,790/mt. Traded volumes expanded 11,330 lots, while positions increased 11,416 lots. SHFE copper prices still are confronted with resistance at the RMB 47,000/mt mark, and are expected to be range-bound for the short term.