SMM Daily Review – 2012/2/23 Copper Market

SMM Insight 08:56:05AM Feb 24, 2012 Source:SMM

SHANGHAI, Feb. 24 (SMM) –SHFE 1205 copper contract prices, the most active one, opened RMB 100/mt down at RMB 60,390/mt Thursday. The SHFE copper contract for delivery in May continued to fluctuate around the daily moving average of RMB 60,300/mt following the opening, and strong Chinese stock markets moving above 2,400 points still helped boost prices to some extent. In the afternoon session, as LME copper prices lowered to test USD 8,400/mt, SHFE copper prices slid correspondingly, but won technical support at USD 60,000/mt, with an intraday low at RMB 59,960/mt. SHFE 1205 copper contract prices narrowed daily losses at the tail of trading owing to position closings, and finally ended at RMB 60,420/mt, down RMB 70/mt or 0.12%. Positions for SHFE 1205 copper contracts were up 3,366 lots, and trading volumes were up 25,710 lots. Short-term short investors conducted operations actively during the whole trading day. Technically, SHFE copper prices were well supported at the low-end, but would continue to test support at the 5-day moving average, with upward resistance at the 10 and 20-day moving averages.

In the spot market, copper discounts prevailed between negative RMB 480-380/mt in Thursday’s morning business, as supply of hedged copper increased slightly amid falling copper futures prices. Traded prices for standard-quality copper were between RMB 59,300-59,400/mt, and RMB 59,350-59,450/mt for high-quality copper. Traders chose to purchase high-quality copper that can be delivered, and quotations for the Guixi Brand were especially high owing to limited supply. Downstream buying interest failed to improve, leaving overall market activity light. In the afternoon business, as SHFE copper prices slid, spot copper discounts fell slightly to between negative RMB 450-350/mt, while traded prices also decreased to between RMB 59,150-59,300/mt.  
 

Key Words:  copper daily review  

SMM Daily Review – 2012/2/23 Copper Market

SMM Insight 08:56:05AM Feb 24, 2012 Source:SMM

SHANGHAI, Feb. 24 (SMM) –SHFE 1205 copper contract prices, the most active one, opened RMB 100/mt down at RMB 60,390/mt Thursday. The SHFE copper contract for delivery in May continued to fluctuate around the daily moving average of RMB 60,300/mt following the opening, and strong Chinese stock markets moving above 2,400 points still helped boost prices to some extent. In the afternoon session, as LME copper prices lowered to test USD 8,400/mt, SHFE copper prices slid correspondingly, but won technical support at USD 60,000/mt, with an intraday low at RMB 59,960/mt. SHFE 1205 copper contract prices narrowed daily losses at the tail of trading owing to position closings, and finally ended at RMB 60,420/mt, down RMB 70/mt or 0.12%. Positions for SHFE 1205 copper contracts were up 3,366 lots, and trading volumes were up 25,710 lots. Short-term short investors conducted operations actively during the whole trading day. Technically, SHFE copper prices were well supported at the low-end, but would continue to test support at the 5-day moving average, with upward resistance at the 10 and 20-day moving averages.

In the spot market, copper discounts prevailed between negative RMB 480-380/mt in Thursday’s morning business, as supply of hedged copper increased slightly amid falling copper futures prices. Traded prices for standard-quality copper were between RMB 59,300-59,400/mt, and RMB 59,350-59,450/mt for high-quality copper. Traders chose to purchase high-quality copper that can be delivered, and quotations for the Guixi Brand were especially high owing to limited supply. Downstream buying interest failed to improve, leaving overall market activity light. In the afternoon business, as SHFE copper prices slid, spot copper discounts fell slightly to between negative RMB 450-350/mt, while traded prices also decreased to between RMB 59,150-59,300/mt.  
 

Key Words:  copper daily review