SHANGHAI, Feb. 17 (SMM) – The US Department of Commerce announced on Wednesday that the US new starts for January rose 14.6%, at an annualize rate of 596,000, lower than the projections of 540,000, but the growth was far higher than the expected growth of 0.2%. As a result, the US three major indexes closed higher. The US new building permits for January fell 10.4%, lower than the expectations. The US dollar index ended lower at 78.19. Meanwhile, the US PPI gained 0.8% in January due to rising energy prices, and the core PPI advanced to a 2-year high of 0.5%, raising market worries over inflation. In addition, concerns over the outlook for economic growth in new-emerging countries also weighed on copper market. As a result, the LME copper market overnight rose at first and then fell during European trading hours, down as low as USD 9,815/mt, and finally closed at USD 9,850/mt, down USD 105/mt or a loss of 1.05%, with price moving below the 5 and 10-day moving averages. Furthermore, LME copper inventories were up 3,375 mt to 405,800 mt, with increases exceeding 57,000 mt since December 9th, hitting the highest level since August 2010. It is worth noting that stock increments are mainly from Singapore and Kwangyang, and the two warehouses are related to goods delivery from China.
During Thursday's Asian trading hours, the US dollar index is expected to move between 78.0-78.5, and SHFE three-month copper contract prices will fluctuate in the RMB 74,800-75,900/mt, and LME copper prices will fluctuate between USD 9,820-9,950/mt.
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