SHANGHAI, Feb. 8 (SMM) –LME copper prices extended Asian trading session's losses during early US and European trading session Tuesday, and especially gathered falling momentum after Germany announced the softer-than-expected industrial data for December, down to a low of USD 8,354/mt. Nevertheless, a Greek official later said the country's government was preparing for a document for the 130-billion-euro bailout package, which needs to get approval from political leaders. This indicated Greek government had basically finished debt talks with its creditors, helping the euro surge by 1%. LME copper prices therefore rallied to early trading session levels, and finally ended at USD 8,505/mt, down slightly by USD 5/mt.
Optimistic expectations towards the Greek debt deal will continue to bolster copper markets, but the euro will likely make corrections following Tuesday's significant increases. Besides, Comex copper prices also slipped this morning. As such, SMM expects LME copper prices will move between USD 8,380 -8,530/mt during Wednesday's Asian trading session, with an intraday high similar with the prior day. The Shanghai Composite Index will continue to struggle at 2,300 points. SHFE copper prices will open higher and confirm support at RMB 60,000/mt, while SHFE 1204 copper contract prices will fluctuate in the RMB 59,900 -60,800/mt range. Spot copper discounts are estimated between negative RMB 350-180/mt versus SHFE 1202 copper contracts.