SHANGHAI, Mar. 26 (SMM) –In the early US and European trading session last Friday, LME copper prices fell to a low of USD 8,290/mt on technical resistance and continuous selling pressures imposed by short investors. Nevertheless, the euro later rallied from previous low levels and forced the US dollar to slide from the highs, boosting commodity markets including crude oil prices which surged by 1.5%. Then, the US announced its home sales fell in February, but that housing prices climbed to their highest in eight months. US equity markets, though, insisted on closing with slight gains, so LME copper prices returned above the opening price before finally settling at USD 8,380/mt, an increase of USD 65/mt.
The LME market will open at 8:00 am starting from today, and LME copper prices tended to edge higher this morning. However, the US dollar will make corrections following last Friday's declines, allowing limited upside room for LME copper. Therefore, LME copper prices are expected to move between USD 8,350-8,480/mt during Monday's Asian trading session, with great pressures at the daily moving average. Chinese stock prices will fluctuate in a narrow band after a high open. SHFE copper prices will stabilize after the opening, while SHFE 1206 copper contract prices will lurch in the RMB 59,800-60,800/mt range. Spot copper discounts are estimated between negative RMB 280-180/mt versus SHFE 1204 copper contracts.