SHANGHAI, Feb. 27 (SMM) –The United Nations' nuclear agency reported last Friday Iran had sharply stepped up work on uranium enrichment, which would probably intensify the relationship between Iran and western countries. Crude oil prices surged to a nine-month high rapidly following this news, sending the US dollar down to 78. The euro took the opportunity to move higher as a result, helping commodity markets close higher. Stimulated by this and combined by some buying from investors, LME copper prices rose all the way, and touched a high of USD 8,544/mt after the US announced upbeat economic data at the tail of trading. Finally, LME copper prices ended at USD 8,500/mt, rising as high as 1.3%.
The euro will fluctuate at highs following last Friday's significant increases, but any downside room for the US dollar will be limited. Comex copper prices moved lower after a high open this morning, signaling resistance prevails during the day. As such, SMM believes LME copper prices will continue to fluctuate around USD 8,500/mt during today's Asian trading session, with prices expected between USD 8,440-8,550/mt. Chinese stock markets will meet great pressures at 2,450 points. SHFE copper prices will move around RMB 61,000/mt after a high open, while SHFE 1205 copper contract prices will lurch between RMB 60,300-61,300/mt. Spot copper discounts are estimated between negative RMB 450-350/mt versus SHFE 1203 copper contracts.