SMM Copper Price Forecast (Feb. 13-17)

SMM Insight 11:00:52AM Feb 13, 2012 Source:SMM

SHANGHAI, Feb. 13 (SMM) –Chinese stocks closed nearly 1% higher last week, and SHFE copper prices hit a high of RMB 61,880/mt after stabilizing above RMB 60,000/mt. The most actively-traded contract was shifted to SHFE 1205 copper, and both trading volumes and positions increased significantly, helping boost copper prices. The SHFE/LME copper price ratio rallied from the lows last week as more speculators chose to buy near-term SHFE copper, as well as sell forward contracts.


As hedge trading was partly locked last week following the Chinese New Year holiday, domestic copper smelters became reluctant to move goods at discounts, opting instead to deliver goods. Losses for copper importers were between RMB 3,000-4,000/mt, so spot copper supply fell, but helped copper discounts narrow slightly. Speculative interest waned last week, and downstream producers chose to stay out of the market with prices near RMB 61,000/mt. Compared to the prior week, however, market transactions were still up last week.  

SMM anticipates SHFE copper prices to surge and move between RMB 60,000-62,500/mt in the coming week, while spot copper prices should hold stable at RMB 60,000/mt, but attempt to break above RMB 61,000/mt.   

 

Key Words:  Cu price forecast 

SMM Copper Price Forecast (Feb. 13-17)

SMM Insight 11:00:52AM Feb 13, 2012 Source:SMM

SHANGHAI, Feb. 13 (SMM) –Chinese stocks closed nearly 1% higher last week, and SHFE copper prices hit a high of RMB 61,880/mt after stabilizing above RMB 60,000/mt. The most actively-traded contract was shifted to SHFE 1205 copper, and both trading volumes and positions increased significantly, helping boost copper prices. The SHFE/LME copper price ratio rallied from the lows last week as more speculators chose to buy near-term SHFE copper, as well as sell forward contracts.


As hedge trading was partly locked last week following the Chinese New Year holiday, domestic copper smelters became reluctant to move goods at discounts, opting instead to deliver goods. Losses for copper importers were between RMB 3,000-4,000/mt, so spot copper supply fell, but helped copper discounts narrow slightly. Speculative interest waned last week, and downstream producers chose to stay out of the market with prices near RMB 61,000/mt. Compared to the prior week, however, market transactions were still up last week.  

SMM anticipates SHFE copper prices to surge and move between RMB 60,000-62,500/mt in the coming week, while spot copper prices should hold stable at RMB 60,000/mt, but attempt to break above RMB 61,000/mt.   

 

Key Words:  Cu price forecast