Metals News
SMM Morning Review - 2012/6/5 Copper Market
smm insight
09:20AM
Jun 5,2012
Source:SMM

SHANGHAI, Jun. 5 (SMM) – The LME market will remain closed Tuesday. Despite disappointing economic data from the US overnight, since European leaders have agreed to conduct closer cooperation with the euro zone's banking sector, markets become optimistic that the European Central Bank will introduce more bailout plans at the G7 meeting to be held later this week. In this context, the euro surged to 1.25 overnight, and still extended the gains Tuesday morning. Comex copper prices have also rallied to cents 334/lb, which will likely help SHFE copper prices rebound. However, the falling Chinese stock markets will restrict SHFE copper prices to make corrections. As such, SMM holds the view SHFE copper prices will keep lurching after starting higher, with SHFE 1209 copper contract expected between RMB 53,000-54,000/mt during Tuesday's Asian trading session. In spot markets, as SHFE copper prices rally from earlier lows, copper premiums will fall marginally to positive RMB 300-400/mt versus SHFE 1206 copper contract. Market surpluses will continue.
 

copper morning review
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