SMM Copper Market Morning Review (2014-11-14)

SHANGHAI, Nov. 14 (SMM) – LME copper prices dropped after rising initially Thursday, hitting a high of USD 6,720/mt and with the intraday low at USD 6,590/mt. The prices closed down USD 72/mt, or 1.07%, at USD 6,607/mt.

China’s fixed asset investment data were reported weak, while the US initial jobless claims inched up, discouraging the market.

Crude oil futures plunged 3.9% to USD 74.21/mt, and Brent crude hit a four-year low, triggering concerns over oversupply of crude oil.

Meanwhile, the Ukrainian tension rose again, with the EU and US mulling further sanctions on Russia. Risk aversion grew as a result. The US dollar index ended at 87.75, down by 0.08%.

The most active SHFE copper contract started at RMB 47,490/mt during Thursday’s night session and hit a low of RMB 47,150/mt before ending at RMB 47,230/mt, down RMB 170/mt, or 0.36%. Positions in the most active contract increased rose by 7,904 lots to 320,980 lots, and trading volumes were 106,120 lots.

SHFE 1501 copper contract prices may move between RMB 46,500-47,300/mt on November 14. Physical copper will be offered at discounts of RMB 80-150/mt.