SMM Copper Market Morning Review (2013-4-11)-Shanghai Metals Market

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SMM Copper Market Morning Review (2013-4-11)

Price Review & Forecast 09:24:32AM Apr 11, 2013 Source:SMM

SHANGHAI, Apr. 11 (SMM) – China’s soaring imports in March and Japan’s reiteration on stimulus plan as well as market optimism over profits at enterprises provided upward impetus to European and US stocks. The Dow Jones and S&P 500 both hit new highs. However, the minutes of the US Federal Reserve indicate that most FOMC members proposed that the Fed should bring quantitative easing to an end before the end of this year. This helped the US dollar index close up, putting downward pressure on bulk stock prices. China’s overall trade figures were positive, boosting confidence over China’s economic recovery. Nevertheless, China’s imports of unwrought copper and copper semis declined 30.8% YoY in March, dimming outlook for copper demand. LME copper slipped to USD 7,536/mt during the European trading session, but did recover some losses after falling to the 10-day moving average. Finally, LME copper closed at USD 7,580/mt.   

LME copper should fluctuate in the band of USD 7,530-7,600/mt during the Asian trading hours on Thursday. News is circulating that the National Development and Reform Commission approved RMB 7 trillion investment projects in Q4 last year, involving infrastructure construction such as rail transportation, road and airports. This may give a lift to Chinese stock markets. SHFE 1308 copper contract prices should move within RMB 54,800-55,300/mt after opening slightly lower. In spot markets, trading volumes may increase at below RMB 55,000/mt, with spot copper premium expected between RMB 50-150/mt against SHFE 1304 copper contract.
 

SMM Copper Market Morning Review (2013-4-11)

Price Review & Forecast 09:24:32AM Apr 11, 2013 Source:SMM

SHANGHAI, Apr. 11 (SMM) – China’s soaring imports in March and Japan’s reiteration on stimulus plan as well as market optimism over profits at enterprises provided upward impetus to European and US stocks. The Dow Jones and S&P 500 both hit new highs. However, the minutes of the US Federal Reserve indicate that most FOMC members proposed that the Fed should bring quantitative easing to an end before the end of this year. This helped the US dollar index close up, putting downward pressure on bulk stock prices. China’s overall trade figures were positive, boosting confidence over China’s economic recovery. Nevertheless, China’s imports of unwrought copper and copper semis declined 30.8% YoY in March, dimming outlook for copper demand. LME copper slipped to USD 7,536/mt during the European trading session, but did recover some losses after falling to the 10-day moving average. Finally, LME copper closed at USD 7,580/mt.   

LME copper should fluctuate in the band of USD 7,530-7,600/mt during the Asian trading hours on Thursday. News is circulating that the National Development and Reform Commission approved RMB 7 trillion investment projects in Q4 last year, involving infrastructure construction such as rail transportation, road and airports. This may give a lift to Chinese stock markets. SHFE 1308 copper contract prices should move within RMB 54,800-55,300/mt after opening slightly lower. In spot markets, trading volumes may increase at below RMB 55,000/mt, with spot copper premium expected between RMB 50-150/mt against SHFE 1304 copper contract.