Home / Metal News / Copper / SMM Morning Review - 2010/6/7 Copper Market
SMM Morning Review - 2010/6/7 Copper Market
Jun 7,2010 10:30CST
smm insight

SHANGHAI, June 7 (SMM) -- The lower-than-expected US non-farm employment data sent US equities markets lower, with major indexes down as much as 3%, and Dow Jones fell below 10,000 points. Fears about debt conditions in Hungary rekindled market concerns over debt issues in Europe, and the euro tumbled as a result, weakening to a new 4-year low, down as low as 1.1881, and finally closed at above 1.19. In this context, LME copper prices slid to a daily session low of USD 6,240/mt from USD 6,550/mt, and finally closed at USD 6,250/mt.

On Monday's electronic trading, the euro continued to fall, and LME copper prices opened low at USD 6,195/mt, and touched USD 6,086/mt at 9:00 am, moving around USD 6,110/mt, close to a fluctuating level of USD 6,000/mt seen in September 2009. Hence, SMM believes support for LME copper prices at USD 6,000/mt will be weak, since a downward trend is still on the track now.

On Monday, SHFE copper prices dropped to a daily limit after opening, a sign of dominant short positions in the market. Particular attention should be paid to performance in China's stocks markets. The SHFE/LME copper price ratio is above 8.15, with supply of imported copper expected to be ample on Monday, but buying interest is predicted to be low amid such a low sentiment. 

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

copper Cu
copper price
LME market
SHFE market
US dollar
US dollar index

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news