SHANGHAI, Dec. 16 (SMM) – South Korea held the nationwide civil defense and air-raid drill yesterday, a sign of unstable situation in the Northeast Asia, and so market risk aversion sentiment increased. Meanwhile, the Moody’s Investors Service lowered the Spanish ratings, also adding to risk aversion sentiment. In this context, the US dollar strengthened yesterday, climbing above 80, and finally closed at 80.19. In addition, LME copper inventories increased by 7,050 mt to 357,950 mt, raising market concerns over short-term price movements. All these factors weighed down the LME copper market overnight. After a low open at USD 9,200/mt, LME copper prices briefly reached USD 9,245/mt, and then fell back, down as low as USD 9,016/mt, and finally ended at USD 9,067/mt. Trading volumes increased slightly by 2,734 lots, and positions were down significantly by 11,228 lots, a sign of profit taking, which will add to the possibility of further price corrections in the LME copper market in the near future.
During Thursday’s Asian trading hours, the US dollar is expected to move between 80-80.4, and LME copper prices will fluctuate USD 8,960-9,080/mt range, and SHFE three-month copper contract prices will move in the RMB 66,900-68,100/mt on Thursday.
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