SHANGHAI, Sept. 6 (SMM) –As copper markets in the US was closed due to the Labor Day holiday on Monday, trading volumes for LME copper reduced, and markets had to continuously absorb weak HSBC's China services sector PMI index for August and the disappointing US non-farm payrolls last week. Coupled with no signs of improvements in the European debt issues, concerns over a global economic slowdown continued to grow. Due to a lack of speculative activities, LME copper prices remained weak, with prices lowering to test near the 20-day moving average of USD 8,920/mt during trading sessions and finally ending at USD 8,959/mt, down more than USD 100/mt.
During Tuesday's Asian trading hours, LME copper prices need to make corrections after significant declines on the previous trading day, and Comex copper prices also rebounded this morning. However, since there was news in the morning that Italian government would probably be unable to fulfill its goal of economic growth rate for 2011, the euro has risks to move downward. Fluctuations at high levels of the US dollar will exert pressures on LME copper prices, and short investors will increase sell-off pressures after LME copper prices broke USD 9,000/mt. As a result, LME copper prices will fluctuate narrowly between USD 8,880-9,020/mt. Chinese stock market will remain weak, which will drag down the high-end SHFE copper prices, and SHFE 1111 copper contract prices will move in the RMB 66,400-67,500/mt band.