SHANGHAI, Mar. 12 (SMM) – Markets continued to absorb softer-than-expected industrial added value and retail sales figures from top consumer China on Monday. China's industrial output data recorded the lowest level in four years during January-February. Meanwhile, Fitch slashed Italy's credit rating by one notch to BBB+ while placing a negative outlook, which pointed to political uncertainty following last month's general election. Against this backdrop, LME copper prices dipped to a trough of USD 7,667/mt in the session. However, the US equity markets hit fresh highs for five straight days, with the Standard & Poor's 500 Index merely 9 points lower than the historical level. Hence, LME copper prices reversed declines as investors bought in large quantities, and finally ended at a recent high of USD 7,768/mt, a gain of USD 19/mt.
With increasing support at USD 7,700/mt, LME copper will stop falling and begin increasing, with prices between USD 7,730-7,800/mt during Tuesday's Asian trading session. SHFE copper prices will fluctuate at highs after starting up, with high resistance at RMB 57,000/mt. SHFE 1306 copper contract will hover in a range of RMB 56,500-57,000/mt. Shanghai spot copper premiums are estimated between RMB 0-110/mt versus SHFE 1303 copper contract.
For queries, please contact Michael Jiang at michaeljiang@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn