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SMM Morning Review - 2011/10/14 Copper Market
Oct 14,2011 09:45CST
price review forecast
Source:SMM
LME copper prices are expected to move between USD 7,300-7,400/mt , and SHFE 1112 copper contract prices will fluctuate in the RMB 54,000-55,000/mt range after a low open.

SHANGHAI, Oct. 14 (SMM) –China's September import and export data announced Thursday by China Customs was softer than expected, increasing investor concerns the biggest metal-consuming country may be unable to sustain its growth trend against the backdrop of a slowing global economy. Market focus was also on Chinese CPI data for September and other important economic reports to be released Friday, keeping market participants cautious. Coupled with sluggish US and European stock markets, LME copper prices posted weak performance during European and the US trading hours, ignoring the later announced mild US economic results. LME copper finally closed the day at USD 7,340/mt, down more than 2%.

During today's Asian trading hours, market players will shift their attention to the release of China's importance economic results including September CPI data, which is expected to remain high. On the euro-zone side, the auction of Italian government bonds is better than estimated, and Slovakia's parliament has passed the expansion of European Financial Stability Facility (EFSF). However, Standard & Poor's (S&P) cut Spain's credit ratings, and Fitch placed some world major banks on negative credit watch, including Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc., Credit Suisse and Deutsche Bank. The Euro faces a risk of moving lower today. Therefore, with great resistance at the daily moving average, LME copper prices are expected to move between USD 7,300-7,400/mt during today's Asian trading hours, and any upward room will be limited. Chinese stock markets will struggle around 2,400 points, and SHFE 1112 copper contract prices will fluctuate in the RMB 54,000-55,000/mt range after a low open.   


 

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