SHFE Copper to See Range-Bound Trading (2016-4-12)

Commerzbank said on Thursday December 2 that it expects that by the end of next year, the copper prices should be trading around $9,500/mt.

The copper prices surged again after the National Day holiday. The US dollar index fell below 94 from a high of 94.5. The US crude oil prices have jumped to $82/barrel after rising for more than one month, driving a rally in the global industrial product prices. The global copper inventories are at a historical low. The LME copper cash-to-three-month backwardation expanded rapidly to $257/mt after breaking through $100/mt, setting a new high since 2007. LME copper exceed $10,000/mt to a high of $10,300/mt, with a weekly increase of 9.25%.

LME approved the listing of JNMCc Grade A copper brand, produced by Guangxi Jinchuan Non-Ferrous Metals on September 19. 

SHFE 1709 copper opened at RMB 46,890/mt today and then hovered around RMB 46,821/mt.

LME tin will hover around USD 20,000/mt today.

Copper prices will have no reason to stay below $5,500 per tonne in the fundamental respect, said Radoslaw Domagalski-Labedzki, Chief Executive Officer (CEO) of KGHM.

Tin prices have been performing quite well recently and will remain firm on low stocks and expectations for tightening supply, despite a strong US dollar, SMM says.

Base metal prices on the SHFE are expected to keep range-bound trading on Thursday, Shanghai Metals Market foresees. 

LME tin will test support at USD 19,700/mt, with eyes on China foreign trade data.

LME copper will range between USD 4,820-4,860/mt on Friday and SHFE 1611 copper is predicted to move at RMB 37,500-37,800/mt.