SHANGHAI, Jan. 22 (SMM) – The macro and data fronts were both comparatively calm Monday. As US markets were closed for Martin Luther King Jr. Day, activity on the base metals market was quiet. LME copper trading volumes decreased sharply. As such, LME copper prices fluctuated narrowly around existing levels and settled at USD 8,055/mt, a slight loss of USD 33/mt. In other news, the proportion of cancelled warrants to total LME copper stocks continued slipping the same day.
While markets await guidance from both the macro front and China's economic figures due Thursday, investors' trading sentiment will weaken. Hence, LME copper prices will see little changes and move between USD 8,030-8,080/mt during Tuesday's Asian trading session. Chinese stock markets are likely to suffer great resistance. SHFE copper prices may drift slightly down, and SHFE 1304 copper contract will hover in the RMB 58,000-58,500/mt range. Shanghai spot copper discounts are estimated between RMB 120-220/mt versus SHFE 1302 copper contract.