SMM Daily Review - 2010/1/6 Copper Market -Shanghai Metals Market

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SMM Daily Review - 2010/1/6 Copper Market

SMM Insight 10:13:55AM Jan 07, 2010 Source:SMM

SHANGHAI, Jan. 7 (SMM) -- On Wednesday, SHFE copper market advanced further from a higher open, hitting a new high, and with a daily price increase of more than 2%. Transactions were brisk. Positions for SHFE 1004 copper contract increased by 11,948 lots, and trading value exceeded RMB 97.3 billion, with prices pointing to RMB 62,000/mt, and prices finally closed at RMB 61,630/mt. Prices of forward-month contracts far surpassed RMB 62,000/mt, and could find support at RMB 61,000/mt. SHFE current month copper contract reached as high as RMB 61,500/mt from a opening level of RMB 60,600/mt, and with prices ending higher at RMB 61,450/mt.

The spot market reported rising movements as well. Although spot discounts were in the negative RMB 150-250/mt range in the morning trade, trading volume was limited. Traded prices were in the RMB 60,700-60,900/mt range before prices soared. Offers heard in the spot market were sparse after 11:00 am when SHFE copper prices soared. Market supply improved slightly before the end of trade at noon thanks to a brief calm performance, while spot discounts narrowed further to the negative RMB 120-220/mt. As a result, spot traded prices advanced to RMB 50,900-61,000/mt, and jumped to RMB 61,100-61,300/mt in the afternoon business. Supply in the spot market was unavailable, since cargo-holders were unwilling to move goods. Spot discounts will likely narrow further on Tuesday. However, the price increases of RMB 1,000/mt on Wednesday depressed downstream purchasing interest, and buyers generally took a wait-and-see attitude in view of soaring copper prices.

 

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None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

SMM Daily Review - 2010/1/6 Copper Market

SMM Insight 10:13:55AM Jan 07, 2010 Source:SMM

SHANGHAI, Jan. 7 (SMM) -- On Wednesday, SHFE copper market advanced further from a higher open, hitting a new high, and with a daily price increase of more than 2%. Transactions were brisk. Positions for SHFE 1004 copper contract increased by 11,948 lots, and trading value exceeded RMB 97.3 billion, with prices pointing to RMB 62,000/mt, and prices finally closed at RMB 61,630/mt. Prices of forward-month contracts far surpassed RMB 62,000/mt, and could find support at RMB 61,000/mt. SHFE current month copper contract reached as high as RMB 61,500/mt from a opening level of RMB 60,600/mt, and with prices ending higher at RMB 61,450/mt.

The spot market reported rising movements as well. Although spot discounts were in the negative RMB 150-250/mt range in the morning trade, trading volume was limited. Traded prices were in the RMB 60,700-60,900/mt range before prices soared. Offers heard in the spot market were sparse after 11:00 am when SHFE copper prices soared. Market supply improved slightly before the end of trade at noon thanks to a brief calm performance, while spot discounts narrowed further to the negative RMB 120-220/mt. As a result, spot traded prices advanced to RMB 50,900-61,000/mt, and jumped to RMB 61,100-61,300/mt in the afternoon business. Supply in the spot market was unavailable, since cargo-holders were unwilling to move goods. Spot discounts will likely narrow further on Tuesday. However, the price increases of RMB 1,000/mt on Wednesday depressed downstream purchasing interest, and buyers generally took a wait-and-see attitude in view of soaring copper prices.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn