LME Copper to See Range-Bound Trading (2016-11-7)

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.

Copper market lacks rising momentum, and LME copper will meet resistance at USD 6,600/mt, and SHFE copper will underperform LME copper. 

SHFE 1709 copper opened at RMB 47,330/mt and closed at RMB 47,250/mt, up RMB 410/mt.

LME copper will move at USD 5,560-5,610/mt during Asian trading hours on Thursday and SHFE 1706 copper will move at RMB 45,400-45,800/mt.

Guangdong Chaohua Technology announced on May 2 that the company finished installation and debugging on equipment of 6-8um high-precision copper foil for Li-battery.

LME copper will trade at USD 5,700-5,760/mt on Monday and SHFE 1704 copper will move at RMB 46,800-47,300/mt.

LME copper will trade at USD 5,650-5,710/mt on Friday and SHFE 1704 copper will move at RMB 46,000-46,500/mt.

SHFE 1705 copper opened at RMB 46,900/mt and closed at RMB 46,570/mt.

LME copper will trade at USD 5,950-6,100/mt on Monday and SHFE 1704 copper will move at RMB 48,300-49,800/mt.