SMM Daily Review – 2012/2/21 Copper Market-Shanghai Metals Market

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SMM Daily Review – 2012/2/21 Copper Market

SMM Insight 08:50:08AM Feb 22, 2012 Source:SMM

SHANGHAI, Feb. 22 (SMM) –As LME copper prices continued to close down overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 430/mt down at RMB 59,250/mt Tuesday. The SHFE copper contract for delivery in May drifted higher after the opening owing to position closings, fluctuating in a broad band during the whole trading day and with the low-end price at RMB 59,230/mt and high-end price at RMB 60,120/mt. Lifted by rising Chinese stock prices, SHFE copper prices surged above the daily moving average in the afternoon session, and held the RMB 60,000/mt benchmark at the tail of trading. Finally, SHFE 1205 copper contract prices closed at RMB 60,050/mt, up RMB 370/mt or 0.62%. Positions for 1205 copper contract were down 13,120 lots, while trading volumes were up 143,000 lots. SHFE copper prices got temporary support at the 30-day moving average of RMB 59,250/mt, but would continue to test resistance at RMB 60,000/mt.

In the spot market, as SHFE copper prices fluctuated in a broad band, and as spot copper supply remained ample after hedged copper came into the market amid falling prices, spot copper discounts expanded further to between negative RMB 420-300/mt in Tuesday’s morning business. Traded prices for standard-quality copper were between RMB 58,750-59,050/mt, and RMB 58,800-59,200/mt for high-quality copper. Domestic copper smelters reduced sale volumes owing to excessive copper discounts, while traders were wary of buying due to severe fluctuations in copper prices. Downstream producers had no intention of buying when copper prices surged abruptly in the session. Market transactions failed to improve as a result, leaving market surpluses more pronounced. In the afternoon business, SHFE copper prices drifted higher, but spot copper discounts rose to between negative RMB 450-350/mt, while traded prices stood above RMB 59,000/mt, causing transaction volumes to fall.


 

Key Words:  copper daily review  

Price

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146750.0
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SMM Daily Review – 2012/2/21 Copper Market

SMM Insight 08:50:08AM Feb 22, 2012 Source:SMM

SHANGHAI, Feb. 22 (SMM) –As LME copper prices continued to close down overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 430/mt down at RMB 59,250/mt Tuesday. The SHFE copper contract for delivery in May drifted higher after the opening owing to position closings, fluctuating in a broad band during the whole trading day and with the low-end price at RMB 59,230/mt and high-end price at RMB 60,120/mt. Lifted by rising Chinese stock prices, SHFE copper prices surged above the daily moving average in the afternoon session, and held the RMB 60,000/mt benchmark at the tail of trading. Finally, SHFE 1205 copper contract prices closed at RMB 60,050/mt, up RMB 370/mt or 0.62%. Positions for 1205 copper contract were down 13,120 lots, while trading volumes were up 143,000 lots. SHFE copper prices got temporary support at the 30-day moving average of RMB 59,250/mt, but would continue to test resistance at RMB 60,000/mt.

In the spot market, as SHFE copper prices fluctuated in a broad band, and as spot copper supply remained ample after hedged copper came into the market amid falling prices, spot copper discounts expanded further to between negative RMB 420-300/mt in Tuesday’s morning business. Traded prices for standard-quality copper were between RMB 58,750-59,050/mt, and RMB 58,800-59,200/mt for high-quality copper. Domestic copper smelters reduced sale volumes owing to excessive copper discounts, while traders were wary of buying due to severe fluctuations in copper prices. Downstream producers had no intention of buying when copper prices surged abruptly in the session. Market transactions failed to improve as a result, leaving market surpluses more pronounced. In the afternoon business, SHFE copper prices drifted higher, but spot copper discounts rose to between negative RMB 450-350/mt, while traded prices stood above RMB 59,000/mt, causing transaction volumes to fall.


 

Key Words:  copper daily review