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SMM Morning Review - 2011/8/18 Copper Market
Aug 18,2011 09:53CST
price review forecast
Source:SMM
SHFE three-month copper contract prices will move slightly higher after a high open, with prices expected between RMB 66,800-67,800/mt.

SHANGHAI, Aug. 18 (SMM) –The macro front news was relatively quiet overnight. The US Core Producer Price Index (Core PPI) for July climbed at its fastest pace in six months, and the US retailers also announced robust earnings and made positive financial forecasts. Coupled with strengthened confidence toward global equity markets, market sentiment improved. After two weeks' dramatic turmoil, investors again returned to riskier assets like copper. Besides, The dollar fell, hurt by steep losses versus the Swiss franc and selling as risk appetite improved, helping LME copper prices surge above USD 9,000/mt, the highest for the week. Finally, LME copper prices closed at USD 8,835/mt, up USD 104/mt, recouping the declines in the previous trading day.

Copper prices on the Comex fell back in the morning business, and a slight recovery in the US dollar from yesterday's losses also weighed down LME copper prices after the opening. However, there will be some buying during Thursday's Asian trading hours. In this context, LME copper prices will mainly fluctuate, with prices expected between USD 8,870-8,990/mt. In domestic markets, Vice Premier Li Keqiang agreed Hongkong RMB to inflow in domestic stock markets, which will be lifted during the whole trading day. As a result, SHFE three-month copper contract prices will move slightly higher after a high open, with prices expected between RMB 66,800-67,800/mt.     
 

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