SHANGHAI, Jan. 23 (SMM) – Market was still under the influence of the new stimulus plan of Japan’s central bank, and investors believed this may give a boost to copper demand. Besides, the ZEW Indicator of Economic Sentiment for Germany has reportedly increased 24.6 points in January to 31.5, its highest since May 2010, leaving financial experts optimistic to Germany’s economic outlook for the next six months, shoring up investors. That, combined with above-expected financial reports from Google and IBM, financial markets saw rebounds. S&P 500 index was only 5% away from a historical high seen in October 2007. However, US economic data released overnight missed forecast, as December existing home sales dropped 1.0% to 4.94 million, below 5.1 million expected, and Richmond Fed Manufacturing data were reported below expectations. The US House will vote on a temporary increase of debt limit prior to mid-May this Wednesday. Given the mixed reports, many investors booked profits. LME copper prices failed to break above USD 8,150/mt to finally close at USD 8,138/mt, gaining USD 83/mt. Most of the gains came from Asian trading hours, while European investors remained cautious.
On January 23, the 1304 SHFE copper contract price is expected to move between RMB 58,400-59,000/mt, and spot discounts over the 1302 SHFE copper contract price should be RMB 150-250/mt.