SMM Morning Review - 2011/3/16 Copper Market

SHANGHAI, Mar. 16 (SMM) – Investor risk appetite dropped along with growing worries over nuclear power plant in Japan from the massive earthquake. Nikkei index continued to tumble on Tuesday, sending the US dollar index up to 77.04, which further weighed on base metal prices. LME copper prices in electronic trading briefly fell below USD 9,000/mt, down as low as USD 8,944.5/mt. Later, the US Federal Reserve announced to continue its quantitative easing policy and keep its interest rate unchanged at a record low of 0-0.25%, pushing down the US dollar index. As a result, LME copper prices rallied, recouping some earlier losses. Finally, LME copper prices closed at USD 9,118/mt after a low open at USD 8,990/mt, down USD 77/mt.

During Wednesday's Asian trading hours, the US dollar index is expected to move between 76.2-77.6, and LME copper prices will fluctuate in the USD 9,050-9,220/mt range, and SHFE three-month copper contract prices will move between RMB 68,500-69,650/mt.

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