SMM Daily Review – 2012/2/22 Copper Market-Shanghai Metals Market

Hot Keywords

  • Zinc
  • Inventory data
  • MMi Iron Ore Port Index
  • Copper scrap
  • Rare earth
  • Copper
  • Aluminium
  • Aluminum
  • Evening comments
  • Morning comments
  • Futures movement
  • Cobalt
  • Market commentary
  • price forecast
  • VAT

SMM Daily Review – 2012/2/22 Copper Market

SMM Insight 08:56:14AM Feb 23, 2012 Source:SMM

SHANGHAI, Feb. 23 (SMM) –As LME copper prices closed with gains overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 930/mt up at RMB 60,690/mt Wednesday. The SHFE copper contract for delivery in May failed to move higher further due to light market activity during the whole trading day, with prices coming under pressure at the daily moving average immediately after the opening, and with an intraday high at only RMB 60,810/mt. However, Chinese stock markets surged to 2,400 points during the trading session, providing solid support for the low-end SHFE copper prices and causing prices to fluctuate in a narrow band between RMB 60,300-60,600/mt. Finally, SHFE 1205 copper contract prices closed at RMB 60,490/mt, up RMB 730/mt or 1.22%. Positions for SHFE 1205 copper contract were down 4,778 lots, while trading volumes were down 150,000 lots. Most long and short investors had little interest in keeping up with rising copper prices, opting instead to wait on the sidelines. SHFE copper prices were expected to test RMB 60,300-60,400/mt over the near term.  

In the spot market, SHFE copper prices rebounded after a high open, but came under pressure at below the daily moving average. Given continuously increasing copper discounts, domestic copper smelters held back goods, but some cargo-holders using copper as a financial vehicle opted to sell aggressively. Mainstream copper discounts were reported between negative RMB 500-400/mt in Wednesday’s morning business. Traded prices for standard-quality copper were between RMB 59,350-59,500/mt, and RMB 59,400-59,600/mt for high-quality copper. Traders stayed out of the market, awaiting opportunities when the price gap between SHFE near-term and forward copper contracts expand further, while downstream producers also stood on the sidelines at RMB 60,000/mt. In the afternoon session, SHFE copper prices continued to come under pressure at the daily moving average, while supply of high-quality copper decreased slightly, helping copper discounts fall slightly to between negative RMB 480-380/mt. Trading sentiment in the afternoon business was lower than that in the morning business.   
 

Key Words:  copper daily review 

SMM Daily Review – 2012/2/22 Copper Market

SMM Insight 08:56:14AM Feb 23, 2012 Source:SMM

SHANGHAI, Feb. 23 (SMM) –As LME copper prices closed with gains overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 930/mt up at RMB 60,690/mt Wednesday. The SHFE copper contract for delivery in May failed to move higher further due to light market activity during the whole trading day, with prices coming under pressure at the daily moving average immediately after the opening, and with an intraday high at only RMB 60,810/mt. However, Chinese stock markets surged to 2,400 points during the trading session, providing solid support for the low-end SHFE copper prices and causing prices to fluctuate in a narrow band between RMB 60,300-60,600/mt. Finally, SHFE 1205 copper contract prices closed at RMB 60,490/mt, up RMB 730/mt or 1.22%. Positions for SHFE 1205 copper contract were down 4,778 lots, while trading volumes were down 150,000 lots. Most long and short investors had little interest in keeping up with rising copper prices, opting instead to wait on the sidelines. SHFE copper prices were expected to test RMB 60,300-60,400/mt over the near term.  

In the spot market, SHFE copper prices rebounded after a high open, but came under pressure at below the daily moving average. Given continuously increasing copper discounts, domestic copper smelters held back goods, but some cargo-holders using copper as a financial vehicle opted to sell aggressively. Mainstream copper discounts were reported between negative RMB 500-400/mt in Wednesday’s morning business. Traded prices for standard-quality copper were between RMB 59,350-59,500/mt, and RMB 59,400-59,600/mt for high-quality copper. Traders stayed out of the market, awaiting opportunities when the price gap between SHFE near-term and forward copper contracts expand further, while downstream producers also stood on the sidelines at RMB 60,000/mt. In the afternoon session, SHFE copper prices continued to come under pressure at the daily moving average, while supply of high-quality copper decreased slightly, helping copper discounts fall slightly to between negative RMB 480-380/mt. Trading sentiment in the afternoon business was lower than that in the morning business.   
 

Key Words:  copper daily review