SMM Morning Review - 2010/3/4 Copper Market

SHANGHAI, Mar. 4 (SMM) -- The euro strengthened by the news of Greece's budget cut plan, and the US dollar index weakened as a result, with levels falling below 80, hitting 79.9. In this context, LME copper prices moved higher, reaching as high as USD 7,535/mt, with prices ending at USD 7,500/mt. SMM believes LME copper prices will not advance further, as the US dollar index will rebound after marked declines, with prices expected to fluctuate in the USD 7,300-7,500/mt range in the short term.

In Chinese spot market, consumption in east China failed to see improvement. Larger spot discounts indicated weak downstream demand, and it also depressed domestic smelter selling interest. Consumption in north China was brisk due to supply tightness, with higher traded prices compared with the east China market.

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

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