SMM Morning Review - 2011/8/29 Copper Market

SHANGHAI, Aug. 29 (SMM) –The US Federal Reserve (Fed) Chairman Ben Bernanke Friday didn't indicate further stimulus measures in the much-awaited speech at the central bank's symposium as market expected, causing European and American stock markets to close higher due to inflow of speculative funds. In response, LME copper prices gained rising momentum and climbed to a high USD 9,139/mt during the trading sessions. However, the uneven US economic data released later dragged down the gains for LME copper prices, which finally closed at USD 9,069/mt, slightly up USD 19/mt.

The LME copper market is closed today. However, copper markets will lack momentum to rebound further, as both gold prices and copper prices on the Comex slid in this morning session. In domestic market, since US equity markets pared the gains, Chinese stock markets will not likely move higher after a high open. Due to a lack of guides from LME copper prices, SHFE three-month copper contract prices will not rise but mainly fluctuate, and SHFE 1111 copper contract prices will move between RMB 67,000-67,800/mt.