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Market activity should remain relatively quiet while investors await China's manufacturing data due Friday and US non-farm payroll report for January. Nevertheless, the US dollar retreated Tuesday morning. This, combined with encouraging US data Monday, will help LME copper rebound slightly, with prices expected between USD 8,040-8,100/mt during Tuesday's Asian trading session. Chinese stock markets will extend increases and help SHFE copper prices drift higher by around RMB 100/mt. SHFE 1305 copper contract will hover in the RMB 58,500-58,900/mt range. Shanghai spot copper discounts are estimated between RMB 100-200/mt against SHFE 1302 copper contract.
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