SHANGHAI, Mar. 1 (SMM) – The US announced on February 28th the personal consumption expenditure increased slightly in January, and the Chicago PMI for February rose to 71.2 from January's 68.8, the highest since July 1988. The US three major indexes closed higher. One official from the US Reserve Federal said the US economy would show positive performance in 2011, and the US dollar index fell to a 3-1/2-month low of 76.75, and may drop further. In addition, market expectations that the US Federal Reserve will continue its economic incentive policies also supported copper prices. High crude oil prices near at USD 100/bbl led higher commodity prices. Meanwhile, China's National Bureau of Statistics announced on February 28th that China's refined copper consumption will rise 5.1% to 7.92 million mt in 2011, further improving market confidence towards consumption in China. In this context, LME copper prices closed up for third straight day, rallying further from a one-month low set in the previous week. Finally, LME copper prices closed at USD 9,874/mt, up USD 135/mt, only 3% away from the record high level of USD 10,190/mt set on February 15th.
During Tuesday's Asian trading hours, the US dollar index is expected to move between 76.7-77.1, and LME copper prices will fluctuate in the USD 9,850-9,970/mt range, and SHFE three-month copper contract prices will move between RMB 73,900-75,600/mt.
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