Metals News
SMM Morning Review - 2011/11/21 Copper Market
smm insight
09:34AM
Source:SMM

SHANGHAI, Nov. 21 (SMM) –Last Friday, the Shanghai Futures Exchange (SHFE) announced both SHFE and LME copper inventories contracted significantly, boosting market confidence. Besides, there was news that the European Central Bank (ECB) would issue loans to the International Monetary Fund (IMF) to aid bigger economies in the Euro-zone area, which led the Euro to surge significantly. In response, LME copper prices extended Asian trading hours' rallies in earlier US and European trading hours and climbed above USD 7,600/mt after gaining some buying support. Nevertheless, LME copper prices still faced difficulties to move higher further due to technical resistance at the 30-day moving average and a reduction of position holdings by some investors at the highs. However, upbeat economic reports from the US in the evening, a rebound in US equity markets at the tail of trading, as well as support by the copper fundamental side, helped LME copper prices fluctuate at relatively high levels, with prices finally closing at USD 7,553/mt, up more than 1%.

The US deficit problems are brought to market attention again, and the US dollar tends to weaken, which will support copper prices trends. Crude oil and Comex copper prices moved higher this morning, also lifting investor confidence. Coupled with support at USD 7,550/mt and positive US economic data, LME copper prices will drift slightly higher between USD 7,500-7,650/mt during today's Asian trading hours. SHFE copper prices will follow LME copper prices to rebound during the whole trading day, but will post weaker performance than LME copper prices due to sluggish Chinese stock markets, while SHFE 1202 copper contract prices will fluctuate in the RMB 55,500-56,700/mt range.   
 



 

copper morning review
For queries, please contact Frank LIU at liuxiaolei@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn
Related Price

No Data