SMM Morning Review - 2010/7/2 Copper Market -Shanghai Metals Market

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SMM Morning Review - 2010/7/2 Copper Market

SMM Insight 10:03:58AM Jul 02, 2010 Source:SMM

SHANGHAI, July 2 (SMM) – Yesterday, LME copper prices opened at USD 6,460/mt, and ended at USD 6,360/mt before hitting a daily high of USD 6,490/mt, and a session low of USD 6,320/mt.

On Thursday, China's official purchasing managers' index (PMI) fell to 52.1 in June from 53.9 in May, triggering market concerns over the pace and strength of the global economic recovery. Purchasing price index, one of major sub-indexes of PMI fell sharply for a second consecutive month, suggesting that China’s PPI will likely drop in June, which will reduce market expectations of inflation and higher interest rate. However, the drop in the PMI also reflected waning demand in overseas markets, as new export order index fell 2.1% in June from May levels. In addition, unfavorable external economic environment will also negatively affect China’s exports. In other news, data from the U.S. showed new jobless claims unexpectedly rose last week, raising market worries over the employment report to be released on Friday. 

Hence, market shows lack of upward momentum due to a series of negative news recently. The US dollar index is now on a track of slow declines, supporting base metal prices to an extent. Coupled with relatively better market fundamentals, copper prices will not see large downward room.

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 - 2010/7/2 Copper Market

SMM Insight 10:03:58AM Jul 02, 2010 Source:SMM

SHANGHAI, July 2 (SMM) – Yesterday, LME copper prices opened at USD 6,460/mt, and ended at USD 6,360/mt before hitting a daily high of USD 6,490/mt, and a session low of USD 6,320/mt.

On Thursday, China's official purchasing managers' index (PMI) fell to 52.1 in June from 53.9 in May, triggering market concerns over the pace and strength of the global economic recovery. Purchasing price index, one of major sub-indexes of PMI fell sharply for a second consecutive month, suggesting that China’s PPI will likely drop in June, which will reduce market expectations of inflation and higher interest rate. However, the drop in the PMI also reflected waning demand in overseas markets, as new export order index fell 2.1% in June from May levels. In addition, unfavorable external economic environment will also negatively affect China’s exports. In other news, data from the U.S. showed new jobless claims unexpectedly rose last week, raising market worries over the employment report to be released on Friday. 

Hence, market shows lack of upward momentum due to a series of negative news recently. The US dollar index is now on a track of slow declines, supporting base metal prices to an extent. Coupled with relatively better market fundamentals, copper prices will not see large downward room.

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