SMM Copper Market Morning Review (2015-1-12)

SHANGHAI, Jan. 12 (SMM) – LME copper prices dipped to a low of USD 6,100/mt last Friday and closed at USD 6,104/mt, down USD 19/mt. LME copper stocks grew 8,325 mt last week to 187,475 mt, up one third as compared with August 2014.

China’s CPI growth slowed for 34 months in a row in December 2014, while PPI posted the biggest decline since September 2009.

In the US, the jobless rate sank to its lowest in seven years in December, with the number of newly employed up for 11 months to exceed 200,000. However, wages dropped noticeably.

During the night session last Friday, SHFE most-active copper contract opened lower at RMB 44,100/mt and hovered near RMB 44,300/mt before finishing at RMB 44,210/mt, falling by RMB 340/mt. Trading volumes of the most active contract were still around 150,000 lots, and positions increased 1,388. Pressure at the 5-day moving average strengthened.

SHFE 1503 copper contract may trade at RMB 44,000-44,500/mt on January 12. Spot copper will be quoted at discounts of RMB 100-180/mt to SHFE 1501 copper contract.