Home / Metal News / SMM Daily Review – 2012/2/28 Copper Market

SMM Daily Review – 2012/2/28 Copper Market

iconFeb 29, 2012 08:59
Source:SMM
SHFE 1205 copper contract prices opened RMB 10/mt up at RMB 60,420/mt Tuesday. Spot copper discounts fell slightly to between negative RMB 450-350/mt in Tuesday’s morning business.

SHANGHAI, Feb. 29 (SMM) –SHFE 1205 copper contract prices, the most active one, opened RMB 10/mt up at RMB 60,420/mt Tuesday. After the opening, as LME copper prices stood steadily above USD 8,500/mt after the US dollar gave up some of overnight gains, SHFE copper prices moved higher after fluctuating briefly, with an intraday low only at RMB 60,370/mt. In the afternoon session, as long investors entered the market, SHFE copper prices continued to rise and touched an intraday high at RMB 61,070/mt at the tail of trading, after triggering short investors’ stop-loss limit. Finally, SHFE 1205 copper contract prices closed at RMB 61,060/mt, up RMB 650/mt or 1.08%. Positions for SHFE 1205 copper contract were up 596 lots, while trading volumes were down 101,000 lots. SHFE copper prices already stood above recent daily moving averages and were expected to test resistance at RMB 60,000/mt for the near future.

In spot markets, SHFE copper prices stood above RMB 60,000/mt, but the supply of high-quality copper decreased due to aggressive buying from traders who had no cash flow pressures. In this context, mainstream spot copper discounts fell slightly to between negative RMB 450-350/mt in Tuesday’s morning business. Traded prices for standard-quality copper were between RMB 59,550-59,650/mt, and RMB 59,600-59,750/mt for high-quality copper. Downstream producers stood on the sidelines at the RMB 60,000/mt mark, and tight cash flows at the month-end continued to dominate the market, keeping market activity light. In the afternoon business, as SHFE copper prices rose steadily, cargo-holders became more optimistic about future copper prices, helping spot copper discounts hold the morning business levels. Traded prices increased to between RMB 59,850-60,050/mt in the afternoon session, but market transactions were greatly depressed at above RMB 60,000/mt.

 

copper daily review

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

SMM Events & Webinars

All