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SMM Copper Market Morning Review (2012-10-23)
Oct 23,2012 11:34CST
price review forecast
Source:SMM
LME copper prices will move between USD 7,930-8,020/mt during Tuesday's Asian trading hours, and SHFE 1301 copper contract will hover in the RMB 57,200-57,800/mt range.

SHANGHAI, Oct. 23 (SMM) – The euro remained slack Monday as Michael Meister, a senor official of German conservative party, said that Germany may support extending the deadline for Greek rescue plan as long as Greece agrees on revised conditions. However, he said that the German parliament is unlikely to provide the third round of bailout to Greece but conduct writedowns for official Greek creditors. Without guidance from economic figures, the international financial market extended last Friday's losses, causing LME copper prices to trend lower along with equity markets in early US and European trading hours, with an intraday low at USD 7,930/mt. Nevertheless, at the tail of trading, it was reported that the Fed this week would discuss expanding the scale of QE3 measures and search better ways to deliver the guidance of future policy directions. Moreover, Caterpillar Inc, a construction equipment manufacturer, and many other companies reported positive earnings and helped US equity markets close higher, reversing the largest daily drop in nearly four months on the prior trading day. As a consequence, LME copper prices pared some the declines before settling USD 48/mt lower at USD 7,944/mt. It was worth noting that the proportion of cancelled warrants to total LME copper stocks tended to decrease gradually, and markets should eye its impact on copper prices.

Moody's slashed credit ratings for Spain's five regions Tuesday morning, which will pressure on copper price trend. With great resistance at USD 8,000/mt, LME copper prices will move between USD 7,930-8,020/mt during Tuesday's Asian trading hours. Markets should also pay attention that whether or not Japan's central bank will further introduce easing measures, and this will influence the country's stock markets and copper prices. The Shanghai Composite Index will continue moving above its daily moving average. SHFE copper prices will start slightly down before repeatedly testing support at RMB 57,500/mt, and SHFE 1301 copper contract will hover in the RMB 57,200-57,800/mt range. Spot copper discounts are estimated between negative RMB 50-150/mt versus SHFE 1211 copper contract.
 

LME copper prices
SHFE copper prices

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