SMM Morning Review - 2012/6/6 Copper Market

SHANGHAI, Jun. 6 (SMM) – The G7 meeting failed to yield substantive results overnight, while Spain's finance and its banking industry face great risks. In this context, the euro will remain weak and is unlikely to rally today. Investors will further digest earlier negative market news and economic figures after the LME market resumes trading today. However, the US economic data improved some overnight, which can help cap LME copper's downside room. SMM believes that LME copper will still move weakly between USD 7,300-7,400/mt during today's Asian trading session. The Shanghai Composite Index will test support at 2,300. SHFE copper will start slightly higher and probably follow LME copper to increase, and SHFE 1209 copper contract is expected to hover in the RMB 53,200-53,900/mt range. Spot copper premiums are estimated between positive RMB 230-300/mt versus SHFE 1206 copper contract.