SMM Morning Review - 2010/3/12 Copper Market -Shanghai Metals Market

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SMM Morning Review - 2010/3/12 Copper Market

SMM Insight 10:06:21AM Mar 12, 2010 Source:SMM

SHANGHAI, Mar. 12 (SMM) -- China's CPI in February increased 2.7% on a yearly basis, approaching to 3% inflation target set in the government work report for 2010 and higher than deposit rate of 2.25%, triggering market worries that China may embark on a monetary tightening policy. As a result, LME copper prices followed declines of SHFE copper prices, falling as low as USD 7,355/mt, and LME copper prices finally closed at USD 7,465/mt. Any downward room for copper prices will be limited following absorption of the news.

Spot consumption in Chinese copper market failed to improve, which was not in line with improved orders. Downstream demand will likely improve if inventories are consumed. 

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

 

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

SMM Morning Review - 2010/3/12 Copper Market

SMM Insight 10:06:21AM Mar 12, 2010 Source:SMM

SHANGHAI, Mar. 12 (SMM) -- China's CPI in February increased 2.7% on a yearly basis, approaching to 3% inflation target set in the government work report for 2010 and higher than deposit rate of 2.25%, triggering market worries that China may embark on a monetary tightening policy. As a result, LME copper prices followed declines of SHFE copper prices, falling as low as USD 7,355/mt, and LME copper prices finally closed at USD 7,465/mt. Any downward room for copper prices will be limited following absorption of the news.

Spot consumption in Chinese copper market failed to improve, which was not in line with improved orders. Downstream demand will likely improve if inventories are consumed. 

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

 

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