SMM Morning Review - 2010/2/10 Copper Market

SHANGHAI, Feb. 10 (SMM) -- German officials said Germany will consider assistance for Greece, and market players generally believe that the EU will find a solution to debt crisis in the Euro zone before the EU summit. Following the news, the euro regained some losses against the US dollar, weighing on the US dollar index, moving around 79.8. As a result, LME copper prices strengthened, with prices closing at USD 6,630/mt, up USD 210/mt, nearer to the 10-day moving average of USD 6,670/mt.

This week, China will announce its preliminary import and export data, with copper imports expected to remain high based on current market supply and favorable price ratio since December 2009. This will be positive for copper prices, but any price increases will be limited. If copper prices jump before the holiday, it will be not favorable for LME copper price trends during the Chinese New Year holiday.

To contact the writer on this report: iriszhu@smm.cn

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