SHANGHAI, Feb. 23 (SMM) –Transaction volumes for LME copper in the US and European markets remained limited Wednesday. LME copper prices moved lower in the early session along with the falling euro, down as low as USD 8,361/mt, as Fitch cut credit ratings for Greece. Nevertheless, as support at near the daily moving average prevailed, and as the later announced US economic data was modest, LME copper prices followed US equities to rally to the early trading session level of USD 8,450/mt before finally ending at USD 8,449/mt, still a slight drop of USD 2/mt. From technical indicators, LME copper prices posted divergent movements compared with other base metals such as aluminum, lead, and zinc each of which rose significantly. LME copper prices won support at the 30 and 5-day moving averages, but will test support at the 10-day moving average of USD 8,415/mt.
The macroeconomic front is relatively quiet today. LME copper prices will fluctuate narrowly around the 20-day moving average of USD 8,450/mt, with prices expected between USD 8,410-8,490/mt during today's Asian trading session. Chinese equity markets will fluctuate around 2,400 points. SHFE copper prices will move in a band similar to the previous day, while SHFE 1205 copper contract prices will lurch between RMB 60,200-60,900/mt. Spot copper discounts are estimated between negative RMB 450-350/mt versus SHFE 1203 copper contract.