LME Copper to Stay Firm (2017-3-2)

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%.

SHFE 1707 copper swung in a wide range at around RMB 46,000/mt after opening and closed at RMB 45,770/mt, down RMB 40/mt.

BHP Billiton has cut annual production guidance of copper and coking coal for 2017 due to long-time strike at Chilean Escondida copper mine and bad weather in east Australia.

LME copper will move at USD 5,680-5,715/mt during Asian trading hours on Wednesday and SHFE 1706 copper will move at RMB 45,900-46,250/mt.

SHFE 1706 copper started at RMB 45,400/mt and closed at RMB 45,840/mt, down RMB 450/mt.

LME copper will trade at USD 5,780-5,820/mt on Tuesday and SHFE 1705 copper will move at RMB 47,200-47,700/mt.

SHFE 1705 copper started at RMB 46,590/mt and closed at RMB 46,650/mt, down RMB 320/mt.

SHFE 1705 copper started at RMB 47,270/mt and closed at RMB 47,300/mt, down RMB 550/mt or 1.15%.

LME copper will trade at USD 5,835-5,900/mt on Tuesday and SHFE 1704 copper will move at RMB 47,350-47,800/mt.