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SMM Copper Market Morning Review (2014-4-18)
Apr 18,2014 09:57CST
price review forecast
Investors showed strong cautions Thursday and took profit before the LME closed for the Good Friday.

SHANGHAI, Apr. 18 (SMM) – Investors showed strong cautions Thursday and took profit before the LME closed for the Good Friday. Short covering allowed LME copper prices to stabilize. Meanwhile, upbeat economic data from the US and better-than-expected financial reports from JP Morgan and General Electric gave a boost to US stocks. LME copper prices closed at an intraday high of USD 6,673/mt, up USD 41/mt. The cash-to-three-month backwardation on LME copper was USD 14/mt.

SHFE 1407 opened at RMB 46,450/mt during Thursday’s night trading and then rose on buying support and higher LME copper to finish the session at RMB 46,600/mt, up RMB 30/mt. Positions for the most active contract increased by 7,548 lots.

The US initial jobless claims rose slightly last week to 304,000, but were still better than the 315,000 expected, with the four week average hitting its lowest since September 2007 at 312,000, while continued jobless claims also fell to a low last seen in December 2007. The US Philly Fed manufacturing index climbed to 16.6 in April, higher than both the 9.8 expected and the 9.0 in March. General Electric and JP Morgan performed better than expected in Q1 according to their financial reports, sending the US stocks up.

Markets were still distressed by the Ukraine crisis. Russia’s minister of foreign affairs said the EU, US, Russia and Ukraine has reached agreement in Geneva to calm the tension in Ukraine, but US President Obama said he was not sure whether the agreement could be observed.

China’s FDI dropped 1.5% YoY in March and grew 5.5% in the first quarter, well below the 10.44% rise for the first two months. In other news, China Banking Regulatory Commission and the People’s Bank of China issued a notice on cooperation between commercial banks and third party payment platforms.

Major indices in the US and European stock markets posted increases Thursday. On the London Metal Exchange, copper and nickel outperformed other base metals.

On April 18, SHFE 1407 copper contract are expected to trade between RMB 46,500-47,000/mt. Physical copper may be quoted at premiums of RMB 700-800/mt against SHFE 1405 copper contract prices as supply continues to decline. .


LME copper
SHFE night trading

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