SHANGHAI, Dec. 30 (SMM) – The LME copper market closed higher after resuming trades from the Christmas holiday, supported by strong performance in the COMEX market and the US positive composite manufacturing data in December. In addition, copper output in Chile, the world's top producer, fell 0.3% in November from a year earlier to 467,478 mt, according to the official statistics on Wednesday. Coupled with general consensus that demand in 2011 will exceed supply, LME copper prices were buoyed, hitting a new record high of USD 9,447/mt during the Asian trading hours after opening at USD 9,405/mt. However, LME copper prices showed weak movements during the US and European trading hours, and fell back after reaching USD 9,384/mt, despite the US dollar down to 79.76. Finally, LME copper market closed at USD 9,411/mt, up 0.54%. Trading volumes stayed low at around 8,074 lots, and positions were down 2,875 lots, an indication that recent price hikes and lackluster trading volumes raised market concerns, and some players chose to stay out of the market. A cautious attitude should be adopted due to higher risks of price declines along with low levels in both trading volumes and positions.
During Thursday’s Asian trading hours, the US dollar is expected to move in the 79.5-79.9 range, and LME copper prices will fluctuate between USD 9,350-9,450/mt, and SHFE three-month copper contract prices will move in the price band of RMB 68,500-69,600/mt on Thursday.
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