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SMM Copper Price Forecast (Feb. 20-24)

iconFeb 20, 2012 10:59
Source:SMM
LME prices may fall to USD 8,000/mt once losing USD 8,300/mt in the coming week, while SHFE copper prices will confirm support at RMB 59,000/mt.

SHANGHAI, Feb. 20 (SMM) –Following LME copper price movements, SHFE copper prices fell to RMB 58,780/mt, down from RMB 61,150/mt and as of Thursday, down 3.82% for the week. Positive statements from Chinese Premier Wen Jiabao and Central Bank Governor Zhou Xiaochuan helped Chinese domestic stock markets close with slight gains. SHFE copper prices showed resilience, allowing the SHFE/LME copper price ratio to improve slightly. Positions and trading volumes also increased while selling pressures grew, moving SHFE copper prices towards the 30-day moving average.  
 
In spot markets last week, as the price gap between SHFE 1202 and 1203 copper contracts remained RMB 500/mt prior to the delivery date for SHFE 1202 contracts, spot copper was still commanding premiums, but later turned to discounts after the delivery date. Hedged copper came into the market as copper prices fell, significantly increasing copper supply. Downstream buying interest weakened after stocks were replenished earlier last week. Spot copper discounts rose continuously later the week despite limited market transactions.

LME prices may fall to USD 8,000/mt once losing USD 8,300/mt in the coming week, while SHFE copper prices will confirm support at RMB 59,000/mt.
 
 

copper price forecast

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