SMM Copper Market Morning Review (2015-4-15)

SHANGHAI, Apr. 15 (SMM) – LME copper prices touched a low of USD 5,900/mt Tuesday but then rose gradually to close at USD 5,945/mt, down by USD 39/mt.

US retail sales grew 0.9% MoM in March, compared to a 1.0% growth expected. US March PPI decreased 0.8% YoY, its largest decline since 2009. This allowed the US dollar index to inch down, which arrested precious metals price drop.

Iran Petroleum Minister said OPEC should cut its daily crude oil output target by at least 5% as falling crude oil prices have harmed the needy members. This will give a lift to crude oil prices in the near term and bolster metals prices.

SHFE 1506 copper contract opened at RMB 42,760/mt during night session Tuesday, and hit a low of RMB 42,570/mt. The prices then rallied but met resistance at RMB 43,180/mt before ending at RMB 42,960/mt, down by RMB 200/mt. Positions in the most active contract declined 982 and trading volumes grew to about 200,000 lots. China’s investment, consumption data for March and Q1 GDP should be released today.

SHFE 1506 copper contract prices are expected at RMB 42,700-43,300/mt on April 15. Spot copper may be quoted between a discount of RMB 50/mt and a premium of RMB 30/mt to SHFE 1504 copper contract. Some traders will starting making quotations based on SHFE 1505 copper contract prices.