SMM Morning Review - 2010/5/28 Copper Market

SHANGHAI, May 28 (SMM) -- China denied on Thursday a report that it was reviewing euro zone debt holdings, easing market concerns over the euro. As a result, the US dollar index fell back to 86.2. In addition, trading sentiment on the LME copper market was brisk following steady increases in the recent SHFE/LME copper price ratio, helping boost LME copper prices reach as high as USD 7,000/mt. Finally, LME copper prices closed at USD 6,970/mt, up USD 140/mt, with positions up 1,787 lots.

Pressure for LME copper prices at USD 7,000/mt is strong, with limited upward momentum expected in the short term. Therefore, SMM believes LME copper prices will fall back, with levels predicted between USD 6,800-7,000/mt.

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

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