SHANGHAI, Jun. 24 (SMM) – Short-covering and dip-buying helped push LME copper above USD 6,800/mt during the European session, which finally closed up USD 71/mt at USD 6,844/mt. LME copper inventories surged 21,725 mt last Friday, but the proportion of cancelled warrants also increased to 47.44%. Positions were up 5,201 lots to 298,000 lots due to dip-buying.
St. Louis Federal Reserve President James Bullard felt that the Federal Open Market Committee (FOMC)’s decision to slow the pace of QE3 was inappropriately timed. President Bullard understood that a more prudent approach would be to wait for more tangible signs that the economy was strengthening and that inflation was on a path to return toward target before making such an announcement. A reporter from WSJ said US Federal Reserve (Fed) Chairman Bernanke used many words that were meant to avoid being regarded as hawkish in his speech. For instance, he emphasized that low interest rate may still continue for a while after unemployment rate falls below 6.5%. This somehow helped lift market sentiment.
On the basis of developments and the prime minister's policies, the Democratic Left has decided to withdraw its ministers and general secretaries from the coalition government, Dimitris Hatzisokratis, a member of Greece's Democratic Left's executive committee, said last Friday. The Democratic Left has the smallest influence in the coalition government, with only two ministers and two deputy ministers in the Cabinet.
Power consumption in China hit 426.9 billion kwh in May, up 5% YoY. YTD power consumption through May grew 4.9% YoY, with growth rate lower than that of GDP and industrial value-added at large enterprises, due to slowing export demand and investment in property sector. China Securities Regulatory Commission (CSRC) held a press conference on June 21, stating that comments for IPO system reform has reached deadline. CSRC’s Further Promotion of IPO System Reform will be applicable to enterprises that are under review or newly approved. CSRC spokesperson denied earlier report of IPO resumption.
European shares continued to fall, while US stocks stopped dropping. LME base metals inched up following sharp declines earlier.
LME copper will test support at USD 6,800/mt on Monday, with prices expected between USD 6,760-6,860/mt during today’s Asian trading session. China’s A-shares will inch up, and SHFE 1310 copper contract will move within RMB 49,000-49,800/mt after a high opening. In spot market, spot premium will narrow to RMB 50-150/mt over SHFE 1307 copper contract prices.