SHANGHAI, Jan. 21 (SMM) -- News reported that China's major commercial banks had received orders to stop lending for the rest of the month. As a result, market concerns towards a tightening monetary policy in China accelerated, though the Chairman of Banking Regulatory Commission denied the news later. Coupled with a strengthening US dollar, with the US dollar index reported above 78.3, base metals markets plunged. LME copper prices weakened to USD 7,375/mt, down USD 170/mt. Market confidence was depressed by recent credit tightening measures in China. However, buying interest for copper at prices around RMB 60,000/mt on the SHFE market was brisk, with strong support.

In this context, SMM believes SHFE copper prices will move around RMB 60,000/mt.

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