SHANGHAI, Apr. 3 (SMM) – The unemployment rate in the euro zone hit a record high of 12% in February, fuelling concerns that it still takes time before the euro zone can get out of recession. Nevertheless, there were bright numbers coming from the US lat night. The US factory orders climbed 3% MoM in February, a new 5-month high mainly because of increased orders for aircrafts. News that the US will improve its medical insurance reimbursement pushed up medical insurance section of the US stock markets. Lifted by upbeat economic data released overnight, the US stock markets closed up, with the Dow Jones and S&P500 both hitting new highs. LME copper closed USD 50/mt lower at USD 7,483/mt, more resilient than other base metals, though. Although LME copper inventories continued to grow, the proportion of cancelled warrants has risen to 20.42%, so growth in inventories will slow in the future.
A weaker euro will keep LME copper in check. On the other hand, LME copper will remain firm due to technical support, and is expected to move within USD 7,450-7,500/mt during the Asian trading hours on Wednesday. The Shanghai Composite Index will extend losses, while SHFE 1307 copper contract should fluctuate in the range of RMB 54,200-54,700/mt as investors will aggressively close positions on the last trading before the Chinese Qingming holiday. In spot markets, cargo holders will continue to hold offers firm, while downstream producers will rebuild stocks in small amounts, with spot copper premiums expected between RMB 80-200/mt.