SMM Copper Market Morning Review (2013-1-8)

SHANGHAI, Jan. 8 (SMM) – Overnight macroeconomic news and data was quiet, and investors still concerned the US Federal Reserve will stop buying assets. US Federal Open Market Committee (FOMC) released its policy minute in December 2012 last week, triggering concerns that US Federal Reserve will quit bond purchasing plan in advance, causing LME copper prices to continue plummeting after an agreement on the US fiscal cliff issue. Commodity market did not gain previous losses yesterday due to sluggish market sentiment. Investors continued to wager price increases. US stocks markets closed with declines, with the Standard & Poor’s index falling after hitting a 5-year high last week. LME copper prices dropped to USD 8,025/mt, and shed some losses due to sliding US dollar index. Finally, LME copper prices closed at USD 8,087/mt, down USD 14/mt, resistant to declines compared to other base metals.

LME copper prices should move between USD 8,020-8,100/mt today. SHFE three-month copper contract prices should move between RMB 58,000-58,500/mt, with spot discounts between RMB 50-150/mt.