LME Copper Faces Weakness (2015-12-8)

SHANGHAI, Feb 9 - The average daily spot price of SMM1# copper was 71,070 yuan/mt on the first day after the Spring Festival, an increase of 570 yuan/mt from January 28, and the closing price of SHFE copper was 70,430 yuan/mt, an increase of 140 yuan/mt.

As Europe’s largest refined zinc producer Nyrstar decided to cut output in the fourth quarter due to the soaring electricity prices in Europe and the significant increase in carbon emissions-related costs, the market concerns of inflation caused by the global energy crisis has risen sharply. And the sharp growth in the cost of industrial products will gradually be passed onto the prices.

LME copper is predicted to range between USD 5,750-5,850/mt during Asian trading hours on Friday and SHFE 1702 copper will move at RMB 46,500-47,500/mt.

SHFE 1702 copper opened at RMB 46,650/mt and finally closed at RMB 47,360/mt, up RMB 710/mt.

Market investors will likely pay more attention to Eurozone among various economic data and news this week.

LME copper is expected to move at USD 5,850-5,930/mt during Asian trading hours on Friday and SHFE 1701 copper will move between RMB 48,200-48,800/mt.

LME copper is expected to range between USD 5,490-5,565/mt during Asian trading hours on Tuesday and SHFE 1701 copper will move at RMB 44,700-45,400/mt.

Macquarie Bank raised its forecast of copper price to $5,350 per tonne in 2017, compared to $4,563 per tonne expected previously, according to wenhua.com.

SHFE 1701 copper started at RMB 41,850/mt and finally closed at RMB 41,600/mt.

LME copper should fluctuate between USD 4,950-5,000/mt during Asian trading hours on Monday and SHFE 1701 copper will range at RMB 39,150-39,600/mt.