SHANGHAI, Sept. 7 (SMM) – LME copper once bounced back to USD 5,250/mt on the back of short-covering last Thursday. US non-farm payrolls missed forecast, reflecting a slowdown in employment growth in August. Global stocks dropped across the board. With the bearish sentiment, LME copper retreated early day’s gains last Friday and slid to USD 5,100/mt before closing at USD 5,109/mt.
During the two trading days on Sept. 3-4, LME copper touched a high of USD 5,314/mt and a low of USD 5,079/mt.
In eurozone, the European Central Bank left interest rate unchanged, but Mario Draghi expressed his concerns over economy growth and deflation. This boosted the case for more quantitative easing, so euro slumped while dollar went stronger. China’s PPI and CPI should be closely watched this week.
Chinese financial market reopens on Monday. LME copper will move between USD 5,080-5,120/mt on Sept. 7. SHFE 1511 copper should follow Chinese stock market to fluctuate between RMB 38,800-39,200/mt. In China’s spot market, cargo holders are more likely to hold prices firm. Spot lead should be offered between discounts of RMB 40/mt and premiums of RMB 30/mt over SHFE front-month contract.