SMM Copper Market Morning Review (2015-9-11)

Published: Sep 11, 2015 10:59

Save

LME copper moved in a tight range of USD 5,360-5,400/mt during European and US trading hours and closed at USD 5,392/mt, edging up USD 36/mt.

SHANGHAI, Sept. 11 (SMM) – LME copper moved in a tight range of USD 5,360-5,400/mt during European and US trading hours and closed at USD 5,392/mt, edging up USD 36/mt.

US initial jobless claims decreased to 275,000 during the week ending Sept. 5. But import and export prices in Aug. posted a largest drop in 7 months, curtaining inflation in US. Overnight, investors turned optimistic on the outlook for copper demand in China and they believed that global copper supply will tighten.

LME copper grew above the 60-day moving average overnight but SHFE copper was slow to rise. SHFE 1511 copper started slightly lower at RMB 40,990/mt during Thursday evening session but then drifted higher to RMB 41,280/mt in response to LME copper and crude oil prices. The contract finally ended the session at RMB 41,030/mt, up RMB 80/mt. Positions declined 3,288 to 227,552 with trading volumes around 270,000 lots.

China’s PPI dropped at a faster pace in Aug. but CPI increased, fueling expectation for additional pro-growth measures. Offshore yuan appreciated noticeably during Asian trading hours, easing worries about persisting depreciation in yuan. The SHFE/LME copper price ratio fell back. LME copper is likely to outperform SHFE copper in future.

LME copper should consolidate the support at the 60-day moving average and move in USD 5,350-5,400/mt during Asian trading hours. However, SHFE 1511 copper may underperform LME copper to range between RMB 40,800-41,300/mt on Sept. 11. Spot copper in China should trade at discounts of RMB 30-80/mt against SHFE 1509 copper. Widening price gap between SHFE 1509 and 1510 copper weakened traders’ willingness to hold offers firm.

SHFE copper prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 hours ago

[SMM Nickel Morning Meeting Summary] US Stocks Rebound, Macro Pressure Eases, the Most-Traded SHFE Nickel Contract Edges Up in Early Trading

[9.21 Morning Meeting Notes] After the rate hike landed, US stocks rallied across the board, with a "bad news exhausted" rally unfolding. Overnight, the Dow rose 0.61%, the S&P 500 gained 1.14%, the Nasdaq advanced 1.69%, and the Philadelphia Semiconductor Index surged 3.14% (Arm up 8%, Intel up 7%, AMD/SanDisk up 6%); the 10-year Treasury yield pulled back from 5.02% to 4.94%, and the US dollar index edged down to 100.22. After the market digested the hawkish dot plot, risk appetite recovered, and European stocks closed higher in tandem. The most-traded SHFE nickel contract (2610) retreated after a rapid rise in early trading, closing the morning session at 123,640 yuan/mt, up 0.62%. After the US Fed's rate hike landed, global risk appetite recovered, and macro pressure eased in stages; SHFE nickel's rebound momentum remained mild, and with nickel's own high inventory and weak demand pattern unchanged, in the short term, the most-traded SHFE nickel contract price is expected to trade in the range of 122,000-126,000 yuan/mt.

11 hours ago

[SMM Analysis] Detailed Data on China's Sulphuric Acid Production in August

NBS data shows that China's sulphuric acid (100% equivalent) production in August was 7.984 million mt, down 308,000 mt from 7.676 million mt in July, a YoY decline of 15.5%. The cumulative production of sulphuric acid (100% equivalent) in 2026 was 68.141 million mt, a cumulative YoY decline of 4.6%.

11 hours ago

16 hours ago

[SMM Analysis] China Sulphur and Sulphuric Acid Import and Export Data for August

In August 2026, China's total monthly sulphur imports were 272,323.414 mt in physical content, down 29.34% MoM and down 65.03% YoY, with the main import sources being the UAE, South Korea, Canada, Japan, Kazakhstan, Vietnam, Singapore, and the Philippines. China's total monthly sulphur exports were 48 mt in physical content, down 96.34% MoM and up 26.32% YoY, with the main export destinations being Indonesia and South Korea. China's total monthly sulphuric acid imports were 9,938.436 mt in physical content, up 831.85% MoM and up 1,051.37% YoY, with the main import sources being South Korea, Taiwan, China, Germany, and the US. China's total monthly sulphuric acid exports were 2,474.46 mt in physical content, up 153.47% MoM and down 99.43% YoY, with the main export destinations being Angola, Ghana, Cambodia, Hong Kong, China, Vietnam, Singapore, Malaysia, and Tanzania.

16 hours ago