SMM Morning Review - 2010/3/25 Copper Market -Shanghai Metals Market

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SMM Morning Review - 2010/3/25 Copper Market

SMM Insight 10:24:21AM Mar 25, 2010 Source:SMM

SHANGHAI, Mar. 25 (SMM) -- As market focus is on the upcoming European Union Summit on this Thursday and Friday, Fitch Ratings downgraded the credit rating for Portugal. The news of a lower credit rating for Portugal increased market risk aversion. As a result, the euro dropped to a 10-month low against the dollar, which hit a high level of 81.92 last seen in May 2009. 

In other news, the US economic data was not as good as expected. According to the US Commerce Department, the US durable orders in February was up 0.5%, reaching to USD 178.12 billion after seasonal adjustment. The data was lower than the expected growth of 0.6%. A stronger US dollar and increased risk aversion resulted in sell-off in industrial metals markets. LME copper prices closed at 7,345/mt, down USD 115/mt.

SMM believes SHFE copper market will open lower on Thursday due to falling LME copper prices. Particular attention should be paid to spot discounts, so as to see any improvement in downstream consumption. 

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 - 2010/3/25 Copper Market

SMM Insight 10:24:21AM Mar 25, 2010 Source:SMM

SHANGHAI, Mar. 25 (SMM) -- As market focus is on the upcoming European Union Summit on this Thursday and Friday, Fitch Ratings downgraded the credit rating for Portugal. The news of a lower credit rating for Portugal increased market risk aversion. As a result, the euro dropped to a 10-month low against the dollar, which hit a high level of 81.92 last seen in May 2009. 

In other news, the US economic data was not as good as expected. According to the US Commerce Department, the US durable orders in February was up 0.5%, reaching to USD 178.12 billion after seasonal adjustment. The data was lower than the expected growth of 0.6%. A stronger US dollar and increased risk aversion resulted in sell-off in industrial metals markets. LME copper prices closed at 7,345/mt, down USD 115/mt.

SMM believes SHFE copper market will open lower on Thursday due to falling LME copper prices. Particular attention should be paid to spot discounts, so as to see any improvement in downstream consumption. 

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