SMM Copper Market Morning Review (2013-12-2)

Price Review & Forecast 10:40:26AM Dec 02, 2013 Source:SMM

SHANGHAI, Dec. 2 (SMM) – Last Friday, the eurozone reported the first drop in jobless data since February 2011, exceeding forecast. The resultant rally in the euro caused commodities market to rise. The US stock markets also improved, with S&P 500 hitting new record of 1.813 and the Dow touching 16,174. LME copper prices rebounded to USD 7,075/mt as a result last Friday, but pared increases later due to a lack of buying support and caution around the Thanksgiving, to finally end USD 1/mt higher at USD 7,030/mt. Notably, Macquarie’s analysis report expected Vietnam’s copper imports to hit 250,000 mt this year, tripling the number of its copper demand, and equating to the volume of surplus in global copper market. No LME approved warehouse for base metals delivery has been established in the country.  

Last Friday witnessed a quiet US market in terms of economic news, and investors mainly paid attention to China and the eurozone. Unemployment rate in the currency union fell unexpectedly to 12.1% in October, the first decline since February 2011, while its preliminary CPI for November beat forecast to rise 0.9%, proffering impetus for the eurozone recovery. 
 
Preliminary reading for China’s official manufacturing PMI held firm in November at a high last seen in May 2012, staying above 50 for 14 months in a row, an indication of steady expansion in China’s manufacturing. Metals markets will gain more traction should the HSBC China PMI to be released Monday turn out positive. Besides, with China Securities Regulatory Commission unveiling IPO reform scheme, about 50 companies are expected to go public by January 2014. It may take one year for the more than 760 companies now lining up to secure the approvals for IPO. Meanwhile, China's State Council said Saturday that it has decided to start a trial, allowing listed firms to issue preferred stocks publicly. This was believed to benefit market for the long run, and seen as a hedge for the newly introduced IPO rules.
 
The US dollar index increased by 0.12%, and the euro dropped 0.14% against the dollar. Global stock market turned out mixed, and most base metals on the London Metal Market, except for aluminum and lead, closed slightly higher last Friday. 
 
SHFE 1402 copper contract prices are expected to move between RMB 50,400-50,800/mt on Monday. In China’s spot copper market, cargo holders will hold quotations firm during the last month of the year, while downstream buyers may refuse to by at highs early in the month, with spot copper expected to be offered at a premium of RMB 50-120/mt over SHFE 1312 copper contract price.
 

SMM Copper Market Morning Review (2013-12-2)

Price Review & Forecast 10:40:26AM Dec 02, 2013 Source:SMM

SHANGHAI, Dec. 2 (SMM) – Last Friday, the eurozone reported the first drop in jobless data since February 2011, exceeding forecast. The resultant rally in the euro caused commodities market to rise. The US stock markets also improved, with S&P 500 hitting new record of 1.813 and the Dow touching 16,174. LME copper prices rebounded to USD 7,075/mt as a result last Friday, but pared increases later due to a lack of buying support and caution around the Thanksgiving, to finally end USD 1/mt higher at USD 7,030/mt. Notably, Macquarie’s analysis report expected Vietnam’s copper imports to hit 250,000 mt this year, tripling the number of its copper demand, and equating to the volume of surplus in global copper market. No LME approved warehouse for base metals delivery has been established in the country.  

Last Friday witnessed a quiet US market in terms of economic news, and investors mainly paid attention to China and the eurozone. Unemployment rate in the currency union fell unexpectedly to 12.1% in October, the first decline since February 2011, while its preliminary CPI for November beat forecast to rise 0.9%, proffering impetus for the eurozone recovery. 
 
Preliminary reading for China’s official manufacturing PMI held firm in November at a high last seen in May 2012, staying above 50 for 14 months in a row, an indication of steady expansion in China’s manufacturing. Metals markets will gain more traction should the HSBC China PMI to be released Monday turn out positive. Besides, with China Securities Regulatory Commission unveiling IPO reform scheme, about 50 companies are expected to go public by January 2014. It may take one year for the more than 760 companies now lining up to secure the approvals for IPO. Meanwhile, China's State Council said Saturday that it has decided to start a trial, allowing listed firms to issue preferred stocks publicly. This was believed to benefit market for the long run, and seen as a hedge for the newly introduced IPO rules.
 
The US dollar index increased by 0.12%, and the euro dropped 0.14% against the dollar. Global stock market turned out mixed, and most base metals on the London Metal Market, except for aluminum and lead, closed slightly higher last Friday. 
 
SHFE 1402 copper contract prices are expected to move between RMB 50,400-50,800/mt on Monday. In China’s spot copper market, cargo holders will hold quotations firm during the last month of the year, while downstream buyers may refuse to by at highs early in the month, with spot copper expected to be offered at a premium of RMB 50-120/mt over SHFE 1312 copper contract price.