SHANGHAI, Mar. 2 (SMM) –The US government announced that its manufacturing sector expanded at its fastest pace in nearly 7 years in February, making the manufacturing sector recover at a faster pace than other sectors sustainable. The unrest in the Middle East remains, and the crude oil prices for April delivery were up USD 2.66/bbl to close at USD 99.63/bbl, triggering inflation concerns. Hence, investor risk appetite for risky commodities, including base metals, reduced. The US three major stock indexes fell by more than 1%, and the US dollar rallied against major currencies, and the euro fell in response. In this context, LME copper prices were down USD 25/mt to end at USD 9,860/mt, although the optimistic outlook towards the US economy stated by the US Fed Chairman in its testimony to the Congress helped support LME copper prices. LME copper inventories experienced first declines in recent days.
During Wednesday's Asian trading hours, the US dollar index is expected to move between 76.8-77.3, and LME copper prices will fluctuate in the USD 9,750-9,870/mt range, and SHFE three-month copper contract prices will move between RMB 73,200-74,200/mt.
Copyright © SMM. All Rights Reserved
None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: email@example.com