SMM Copper Market Morning Review (2014-8-11)-Shanghai Metals Market

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SMM Copper Market Morning Review (2014-8-11)

Price Review & Forecast 09:51:56AM Aug 11, 2014 Source:SMM

SHANGHAI, Aug. 11 (SMM) – LME three-month copper closed at USD 6,999/mt last Friday, up USD 15/mt, outperforming other base metals.

Last Friday, investors were pondering China’s trade data and influence from the escalating geopolitical crisis. China’s copper product imports fell 17% year-on-year to 340,000 mt in July. The US President Obama authorized airstrike in north Iraq, and NATO’s Secretary General appealed Russia to retreat from the border of Ukraine. However, news that Russia has completed military manoeuvre at the border of Ukraine appeased market players. Besides, market is now oversold. US shares rebounded last Friday, with the Dow up 1.15% and S&P 500 rising 1.13%.

As notable, the escalating geopolitical crisis have caused most investors to seek safety, with the 10-year US Treasury bond yield dipping below 2.4% for the first time this year, and Germany’s 10-year government bond yields down to nearly 1%. In the UK, bond yields also sank to the lowest since August last year, and Japan’s bond yields fell to more than one-year low.

SHFE 1410 copper contract prices opened at RMB 49,750/mt during night session last Friday and finished at RMB 49,850/mt after meeting resistance at RMB 50,000/mt, up RMB 60/mt. Traded volumes for the most active SHFE copper contract were around 90,000 lots, while positions increased 3,654 lots.

On August 11, SHFE 1410 copper contract prices may move between RMB 49,700-50,200/mt. Spot copper are expected to be offered between a discount of RMB 30/mt and a premium of RMB 50/mt against SHFE 1408 copper contract prices.
 

SMM Copper Market Morning Review (2014-8-11)

Price Review & Forecast 09:51:56AM Aug 11, 2014 Source:SMM

SHANGHAI, Aug. 11 (SMM) – LME three-month copper closed at USD 6,999/mt last Friday, up USD 15/mt, outperforming other base metals.

Last Friday, investors were pondering China’s trade data and influence from the escalating geopolitical crisis. China’s copper product imports fell 17% year-on-year to 340,000 mt in July. The US President Obama authorized airstrike in north Iraq, and NATO’s Secretary General appealed Russia to retreat from the border of Ukraine. However, news that Russia has completed military manoeuvre at the border of Ukraine appeased market players. Besides, market is now oversold. US shares rebounded last Friday, with the Dow up 1.15% and S&P 500 rising 1.13%.

As notable, the escalating geopolitical crisis have caused most investors to seek safety, with the 10-year US Treasury bond yield dipping below 2.4% for the first time this year, and Germany’s 10-year government bond yields down to nearly 1%. In the UK, bond yields also sank to the lowest since August last year, and Japan’s bond yields fell to more than one-year low.

SHFE 1410 copper contract prices opened at RMB 49,750/mt during night session last Friday and finished at RMB 49,850/mt after meeting resistance at RMB 50,000/mt, up RMB 60/mt. Traded volumes for the most active SHFE copper contract were around 90,000 lots, while positions increased 3,654 lots.

On August 11, SHFE 1410 copper contract prices may move between RMB 49,700-50,200/mt. Spot copper are expected to be offered between a discount of RMB 30/mt and a premium of RMB 50/mt against SHFE 1408 copper contract prices.