SMM Morning Review - 2010/9/29 Copper Market

SHANGHAI, Sep. 29 (SMM) – LME copper market overnight got support, as the S&P/Case-Shiller U.S. National home price index was in line with expectations, which improved market confidence towards copper consumption. Later, the US dollar index dipped to 78.9 after data showed a decline in U.S. consumer confidence to its lowest level of 48.5 since February, well below the expected level of 52.0. In this context, LME copper prices climbed higher, and reached as high as USD 7,997/mt before closing at USD 7,981/mt, up USD 73/mt.

During Wednesday's earlier Asian trading hours, LME copper prices were fluctuating in the USD 7,960-7,970/mt range. SMM believes that LME copper prices will hardly make further breakthroughs before Chinese National Day holiday, with prices expected to move between USD 7,900-8,000/mt. Weak performances in domestic spot copper market will not allow SHFE copper market to move independently of LME copper market, and resistance at the RMB 61,000/mt market will be great in the short term.

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