SMM Daily Review – 2012/6/19 Copper Market

Price Review & Forecast 09:09:24AM Jun 20, 2012 Source:SMM

SHANGHAI, Jun. 20 (SMM) – SHFE 1209 copper contract started RMB 220/mt down at RMB 55,020/mt Tuesday. After the opening, the contract followed LME copper to increase and then fluctuated around RMB 55,200/mt, with a high at RMB 55,290/mt. In the afternoon, the Shanghai Composite Index lowered to test support at 2,300 and pushed the contract to come under pressure at the daily moving average. At the tail of trading, the US dollar rose and caused LME copper to retreat below USD 7,500/mt, so SHFE 1209 copper contract slid below the support at RMB 55,000/mt to an intraday low of RMB 54,880/mt as shorts entered markets and built positions for forward copper contracts. Finally, SHFE 1209 copper contract closed RMB 330/mt or 0.6% down at RMB 54,910/mt. SHFE 1210 copper contract reported a high at RMB 55,100/mt during the day and a low at RMB 54,650/mt, with prices finally settling at RMB 54,670/mt, down RMB 370/mt or a loss of 0.67%. SHFE 1210 copper contract became the most active copper contract during the day. Trading volumes for all SHFE copper contracts fell by 143,000 lots, but positions added by 2,298 lots. Resistance at the 30-day moving average of RMB 55,000/mt was high and longs and shorts will still struggle at this price mark for the near future.

As some traders in spot markets bought copper in large quantities, cargo-holders held prices firm and helped copper premiums rise all the way. Mainstream spot copper premiums were quoted between positive RMB 250-320/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 55,830-55,870/mt, and RMB 55,850-55,950/mt for high-quality copper. Overall spot copper market activity kept active in the morning. However, as copper premiums increased near the midday, purchases at prices near RMB 56,000/mt slowed noticeably, turning market participants cautious again. Downstream producers still sourced to order during the whole day. In the afternoon, as SHFE copper came under pressure and sank rapidly at the tail of trading, spot copper premium offers for high-quality copper were as high as positive RMB 340-350/mt, while mainstream premium quotations were between positive RMB 250-350/mt. Traded prices inched down to RMB 55,800-55,850/mt in the afternoon, but actual market transactions remained limited.
 

SMM Daily Review – 2012/6/19 Copper Market

Price Review & Forecast 09:09:24AM Jun 20, 2012 Source:SMM

SHANGHAI, Jun. 20 (SMM) – SHFE 1209 copper contract started RMB 220/mt down at RMB 55,020/mt Tuesday. After the opening, the contract followed LME copper to increase and then fluctuated around RMB 55,200/mt, with a high at RMB 55,290/mt. In the afternoon, the Shanghai Composite Index lowered to test support at 2,300 and pushed the contract to come under pressure at the daily moving average. At the tail of trading, the US dollar rose and caused LME copper to retreat below USD 7,500/mt, so SHFE 1209 copper contract slid below the support at RMB 55,000/mt to an intraday low of RMB 54,880/mt as shorts entered markets and built positions for forward copper contracts. Finally, SHFE 1209 copper contract closed RMB 330/mt or 0.6% down at RMB 54,910/mt. SHFE 1210 copper contract reported a high at RMB 55,100/mt during the day and a low at RMB 54,650/mt, with prices finally settling at RMB 54,670/mt, down RMB 370/mt or a loss of 0.67%. SHFE 1210 copper contract became the most active copper contract during the day. Trading volumes for all SHFE copper contracts fell by 143,000 lots, but positions added by 2,298 lots. Resistance at the 30-day moving average of RMB 55,000/mt was high and longs and shorts will still struggle at this price mark for the near future.

As some traders in spot markets bought copper in large quantities, cargo-holders held prices firm and helped copper premiums rise all the way. Mainstream spot copper premiums were quoted between positive RMB 250-320/mt in Shanghai in the morning business. Traded prices for standard-quality copper were between RMB 55,830-55,870/mt, and RMB 55,850-55,950/mt for high-quality copper. Overall spot copper market activity kept active in the morning. However, as copper premiums increased near the midday, purchases at prices near RMB 56,000/mt slowed noticeably, turning market participants cautious again. Downstream producers still sourced to order during the whole day. In the afternoon, as SHFE copper came under pressure and sank rapidly at the tail of trading, spot copper premium offers for high-quality copper were as high as positive RMB 340-350/mt, while mainstream premium quotations were between positive RMB 250-350/mt. Traded prices inched down to RMB 55,800-55,850/mt in the afternoon, but actual market transactions remained limited.