Home / Metal News / SMM Morning Review - 2011/11/10 Copper Market

SMM Morning Review - 2011/11/10 Copper Market

iconNov 10, 2011 09:38
Source:SMM
LME copper prices will move between USD 7,500-7,700/mt during today's Asian trading hours, while SHFE 1201 copper contract prices will fluctuate in the RMB 55,300-56,800/mt range.

SHANGHAI, Nov. 10 (SMM) –The cost of Italian government borrowing continued to rise to a historical high on Wednesday, causing the Euro to dive to nearly 1.35. Later, the Euro-zone officials said Italian government's borrowing costs already surged to near unsustainable levels, which was considered by investors that global economic prospects were much dimmer and base metal demand was weakening, since there was no bailout plan for Italy in the short term. In response, the US dollar climbed significantly to 78 due to safe-havens, while US equity markets plummeted by more than 3%. Due to position closings by long investors and selling pressures from short investors, LME copper prices experienced a round of dives in earlier trading session to USD 7,700/mt, and then fell to a low of USD 7,580/mt, with price movement remaining weak later. Finally, LME copper prices closed at USD 7,606/mt, a drop of nearly 3%, while trading volumes increased wildly, suggesting panic market sentiment. However, it was worth noticing that market views on LME and Comex markets didn't mention the impacts from China's important economic data, so markets were probably awaiting China's trade data for October to be announced Thursday so as to prove whether or not China's demand began to slow down.

As markets expect China's October trade will not be positive, market sentiment has been depressed and LME copper prices will move between USD 7,500-7,700/mt during today's Asian trading hours. Chinese stock markets will open lower due to a drag of diving US equity markets overnight, but movement will ease since some capital will enter the market, which will alleviate the declines of SHFE copper prices. Therefore, SHFE copper prices will open down and are unlikely to return to highs, while SHFE 1201 copper contract prices will fluctuate in the RMB 55,300-56,800/mt range.  
 

copper morning review; LME copper prices

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news
    timeJul 26, 2021 11:58
    timeJul 26, 2021 11:39
    timeJul 26, 2021 11:51
    timeJul 26, 2021 11:41
    timeJul 26, 2021 11:27
    timeJul 26, 2021 11:18
    timeJul 26, 2021 09:26
    timeJul 23, 2021 21:48
    timeJul 23, 2021 21:46
    timeJul 23, 2021 21:40

SMM Events & Webinars

All