SMM Morning Review - 2010/6/17 Copper Market -Shanghai Metals Market

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SMM Morning Review - 2010/6/17 Copper Market

SMM Insight 10:21:29AM Jun 17, 2010 Source:SMM

SHANGHAI, June 17 (SMM) –

Date
Opening Price
Highest Price
Lowest Price
Closing Price
Up/Down
Stocks
6-11
6415
6535
6375
6460
75
465000
6-14
6446
6712
6446
6650
190
463175
6-15
6610
6695
6560
6690
40
461525
6-16
6705
6775
6552
6660
-30
459150

LME copper prices rallied during China's Dragon Boat Festival holiday, mainly supported by easing concerns over economic conditions in Europe, and continuous declines in the SHFE/LME copper price ratio. The Europe's factory production gained 9.5% in April, the most since the data started in 1991; Ireland and Spain reported positive sales of government bonds. The positive news offset negative impact from Moody's move to lower Greece's credit rating, a slowing manufacturing growth in China, as well as a weaker-than-expected economic data in the US. In this context, the euro gained strongly, and the US dollar index fell back as low as 85.9. The EU and US equities markets climbed higher following a stronger euro and a weaker US dollar, helping LME copper prices gain, reaching as high as USD 6,775/mt after rising above the 30-day moving average. On Wednesday evening, LME copper prices fell back to USD 6,600/mt, depressed by the US's unfavorable housing data, with operating rates down 10%.

On Thursday, SMM believes SHFE copper prices will rally to keep up rising pace on the LME copper market during Chinese Dragon Boat Festival holiday, with SFHE September delivery copper prices expected to move between RMB 52,500-53,500/mt. LME copper prices will remain closely tied to economic news. SMM expects the euro to fall after the round of rebound, and so LME copper prices will be pressed. SMM takes a relatively pessimistic view towards short-term copper prices.

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

Price

more
Aluminum Ingot
Apr.19
14050.0
40.0
(0.29%)
Alumina (Averaged)
Apr.19
2665.0
0.0
(0.00%)
Alumina-East
Apr.19
2680.0
0.0
(0.00%)
Alumina -Central
Apr.19
2670.0
0.0
(0.00%)
Alumina - North
Apr.19
2660.0
0.0
(0.00%)

SMM Morning Review - 2010/6/17 Copper Market

SMM Insight 10:21:29AM Jun 17, 2010 Source:SMM

SHANGHAI, June 17 (SMM) –

Date
Opening Price
Highest Price
Lowest Price
Closing Price
Up/Down
Stocks
6-11
6415
6535
6375
6460
75
465000
6-14
6446
6712
6446
6650
190
463175
6-15
6610
6695
6560
6690
40
461525
6-16
6705
6775
6552
6660
-30
459150

LME copper prices rallied during China's Dragon Boat Festival holiday, mainly supported by easing concerns over economic conditions in Europe, and continuous declines in the SHFE/LME copper price ratio. The Europe's factory production gained 9.5% in April, the most since the data started in 1991; Ireland and Spain reported positive sales of government bonds. The positive news offset negative impact from Moody's move to lower Greece's credit rating, a slowing manufacturing growth in China, as well as a weaker-than-expected economic data in the US. In this context, the euro gained strongly, and the US dollar index fell back as low as 85.9. The EU and US equities markets climbed higher following a stronger euro and a weaker US dollar, helping LME copper prices gain, reaching as high as USD 6,775/mt after rising above the 30-day moving average. On Wednesday evening, LME copper prices fell back to USD 6,600/mt, depressed by the US's unfavorable housing data, with operating rates down 10%.

On Thursday, SMM believes SHFE copper prices will rally to keep up rising pace on the LME copper market during Chinese Dragon Boat Festival holiday, with SFHE September delivery copper prices expected to move between RMB 52,500-53,500/mt. LME copper prices will remain closely tied to economic news. SMM expects the euro to fall after the round of rebound, and so LME copper prices will be pressed. SMM takes a relatively pessimistic view towards short-term copper prices.

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