SMM Copper Market Morning Review (2015-3-4)

SHANGHAI, Mar. 4 (SMM) – LME copper prices dipped as low as USD 5,785/mt on Tuesday and closed at USD 5,835/mt, down by USD 82/mt.

The euro zone PPI hit a five-year low in January, which, combined with slipping prices for energy, stoked market concerns. Besides, markets were waiting for details of the European Central Bank’s asset purchasing program.

The US dollar remained strong, also weighing down base metals prices.

SHFE most-active copper contract edged lower to RMB 42,400/mt after starting Tuesday’s night session at RMB 42,480/mt. The May delivery touched a low of RMB 42,120/mt later due to falling LME copper and finished the session at RMB 42,330/mt, down by RMB 470/mt. Positions in the May delivery copper grew 5,840, and trading volumes were 169,362 lots. The prices may test the 10-day moving average today.

SHFE 1505 copper contract should trade at RMB 42,000-42,600/mt on March 4. Spot discounts will be RMB 120-220/mt.