SHANGHAI, Mar. 8 (SMM) –During Wednesday's early US and European trading session, German industrial orders were reported to slide unexpectedly in January, keeping markets cautious. In response, LME copper prices extended losses and lowered to test support at USD 8,176/mt. Nevertheless, data later revealed that 58% of private creditors in Greece agreed to participate in the debt swap deal, and major banks and pension funds expressed support for Greek debt swap. This raised market optimism that Greece can finish debt restructuring before the deadline for Greek swap to ensure the EUR 130 billion bailout package, which drove investors to industrial metals, the euro, stocks, and other risky assets. The euro thus rallied and helped commodity prices escape from previous lows. The US then announced the ADP employment data was higher than anticipated in February, while there were rumors the Federal Reserve would likely introduce new bond buying plans to stimulate economic growth, causing US equity markets to close with gains. LME copper prices therefore gained momentum again and increased to above early trading session levels, before finally ending at USD 8,283/mt, a slight surge of USD 39/mt.
Market focus is now on the latest decision of the European Central Bank tonight and the final result of Greek debt swap. In this context, LME copper prices will fluctuate weakly between USD 8,250-8,350/mt during today's Asian trading session. Chinese stock markets will try to stand above 2,400 points. SHFE copper prices will lurch around current values, waiting for more guidance from LME copper, while SHFE 1206 copper contract prices will move in the RMB 58,800-59,800/mt range. In spot markets, market surpluses will continue, but cargo-holders will not be willing to move goods at large discounts. Hence, spot copper offers are estimated to stay flat with the prior day levels, between discounts of negative RMB 70/mt and premiums of positive RMB 30/mt versus SHFE 1203 copper contract.