SHANGHAI, Apr. 9 (SMM) – The latest industrial output announced by Germany last night was satisfying, pushing the euro higher and helping the US stock markets close up. LME copper touched a high of USD 7,524/mt, but later fell back on technical resistance and selling at highs. Finally, LME copper finished at USD 7,471/mt. It is widely believed among market players that news on Chile Labor Union’s plan of nationwide strike this week is one of the reasons behind LME copper’s rise. However, SMM believes strike will do little to lift copper prices given the current supply glut. Thomas Keller, CEO of Chile’s state-owned copper producer Codelco, said its company has resumed operations in copper business.
Markets are bearish over China’s upcoming economic figures for March, and this will keep LME copper in check within USD 7,450-7,530/mt during the Asian trading hours on Tuesday. SHFE 1308 copper contract prices should fluctuate in a RMB 54,300-55,000/mt range after starting today slightly higher. In spot markets, cargo holders will hold quotations firm, with spot copper premiums expected between RMB 150-250/mt against SHFE 1304 copper contract.