SHFE Copper to See Thin Trading as Holiday Nears (2016-2-3)

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.

On Wednesday’s night trading, the dollar stopped falling, but a weak dollar is expected to be remain, and base metals will keep fluctuating.

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.

Base metal prices on the SHFE are expected to diverge on Friday, Shanghai Metals Market foresees. 

Base metal prices on the SHFE are expected to be volatile on Thursday, Shanghai Metals Market foresees. 

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.

Base metal prices on the SHFE are expected to trade in a wide range this week, Shanghai Metals Market predicts. 

Base metal prices on the SHFE are expected to trade cautiously during Asian trading hours on Friday, Shanghai Metals Market foresees.