SHANGHAI, Mar. 16 (SMM) –The macroeconomic news front was comparatively calm Thursday. The International Monetary Fund (IMF) approved the second round of Greek bailout package worth EUR 28 billion in early US and European trading hours, and helped the euro rally from low levels, which caused the US dollar to extend the losses registered in Asian trading hours. LME copper prices therefore climbed stably from the daily moving average. Later, the US announced positive economic data again, which led US equity markets to extend the previous day's increases, with the Standard & Poor's 500 Index closing above 1,400. LME copper prices expanded gains as a consequence, and touched a high of USD 8,580/mt before finally ending at USD 8,571/mt, a surge of USD 141/mt. From price movements during the whole week, LME copper prices swung between gains and losses, an indication of uncertainties in where copper prices are headed over the near term.
LME copper prices will mainly fluctuate at high levels today, and will test support at the 5-day moving average. The US dollar will take a rest following the prior day's considerable drops, capping upward LME copper prices. SMM believes LME copper prices will move between USD 8,480-8,580/mt during today's Asian trading hours. Chinese stock markets will come under pressure and drag down SHFE copper prices, which are unlikely to break resistance at RMB 61,000/mt easily following a high open. SHFE 1206 copper contract prices are expected to fluctuate in the RMB 60,100-61,100/mt band. After the delivery date for SHFE 1203 copper contract, spot copper offers are estimated to return to discounts of negative RMB 200-100/mt against SHFE 1204 copper contract.