SMM Daily Review – 2012/2/24 Copper Market-Shanghai Metals Market

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SMM Daily Review – 2012/2/24 Copper Market

SMM Insight 09:03:40AM Feb 27, 2012 Source:SMM

SHANGHAI, Feb. 27 (SMM) –As LME copper prices rallied slightly overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 130/mt up at RMB 60,370/mt Friday. After the opening, the SHFE copper contract for delivery in May moved lower all the way and only reached a high at RMB 60,580/mt, as LME copper prices fell to test USD 8,300/mt due to the surging US dollar. SHFE copper prices fell to as low as RMB 59,600/mt in the afternoon session after losing RMB 60,000/mt in the morning. Finally, SHFE 1205 copper contract prices settled at RMB 59,620/mt, down RMB 620/mt or 1.03%. Positions for SHFE 1205 copper contracts were up 13,560 lots, and trading volumes were up 103,000 lots. With growing selling pressures, SHFE copper prices lost support at recently moving averages and would likely lose the 30-day moving average.

SHFE copper prices moved lower after a high open, and transactions were restricted at RMB 61,000/mt. Spot copper supply decreased slightly, helping spot copper discounts move between negative RMB 430-300/mt in Friday’s morning business. Traded prices for standard-quality copper were between RMB 59,250-59,450/mt, and RMB 59,350-59,550/mt for high-quality copper. Domestic standard-quality copper cargo-holders remained unwilling to move goods, during the whole trading day. High-quality copper was more favored by traders, but overall market activity was very light in the morning session. In the afternoon session, as SHFE copper prices slipped further, spot copper discounts fell to between negative RMB 380-280/mt, while traded prices declined to between RMB 58,950-59,200/mt. Some traders of hedged copper increased sale volumes, and both downstream producers and traders increased buying at below RMB 59,000/mt, causing market transactions to rise in the afternoon business. SHFE copper inventories were down 1,056 mt to 216,086 mt in the week ending February 24th, which may be a signal of improved consumption.

 

Key Words:  copper daily review  

SMM Daily Review – 2012/2/24 Copper Market

SMM Insight 09:03:40AM Feb 27, 2012 Source:SMM

SHANGHAI, Feb. 27 (SMM) –As LME copper prices rallied slightly overnight, SHFE 1205 copper contract prices, the most active one, opened RMB 130/mt up at RMB 60,370/mt Friday. After the opening, the SHFE copper contract for delivery in May moved lower all the way and only reached a high at RMB 60,580/mt, as LME copper prices fell to test USD 8,300/mt due to the surging US dollar. SHFE copper prices fell to as low as RMB 59,600/mt in the afternoon session after losing RMB 60,000/mt in the morning. Finally, SHFE 1205 copper contract prices settled at RMB 59,620/mt, down RMB 620/mt or 1.03%. Positions for SHFE 1205 copper contracts were up 13,560 lots, and trading volumes were up 103,000 lots. With growing selling pressures, SHFE copper prices lost support at recently moving averages and would likely lose the 30-day moving average.

SHFE copper prices moved lower after a high open, and transactions were restricted at RMB 61,000/mt. Spot copper supply decreased slightly, helping spot copper discounts move between negative RMB 430-300/mt in Friday’s morning business. Traded prices for standard-quality copper were between RMB 59,250-59,450/mt, and RMB 59,350-59,550/mt for high-quality copper. Domestic standard-quality copper cargo-holders remained unwilling to move goods, during the whole trading day. High-quality copper was more favored by traders, but overall market activity was very light in the morning session. In the afternoon session, as SHFE copper prices slipped further, spot copper discounts fell to between negative RMB 380-280/mt, while traded prices declined to between RMB 58,950-59,200/mt. Some traders of hedged copper increased sale volumes, and both downstream producers and traders increased buying at below RMB 59,000/mt, causing market transactions to rise in the afternoon business. SHFE copper inventories were down 1,056 mt to 216,086 mt in the week ending February 24th, which may be a signal of improved consumption.

 

Key Words:  copper daily review