Shanghai Copper Market Movement (2017-9-27)

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%.

Market players in Shanghai spot copper market became bearish today after SHFE copper unexpectedly fell 100 yuan/tonne before noon.

Supply of imported copper in Shanghai spot market will see a temporary decline, and this will allow its premiums to continue, SMM expects.

SHFE 1710 copper opened at RMB 52,740/mt on Tuesday, and hit a high of RMB 52,940/mt.

SHFE 1710 copper hit new highs yesterday, and will rise further to RMB 52,400-52,900/mt today.

Sellers and buyers in Shanghai spot copper market are still in a deadlock today.

SHFE copper jumped above 51,000 yuan/tonne to the highest level in three and a half years on Tuesday.

Trading in Shanghai spot copper market was not as active as yesterday as the fallback in SHFE copper turned buyers cautious.

Spot discounts in Shanghai copper market widened sharply to 90-140 yuan/tonne today after SHFE copper gained 2.5% to above 51,000 yuan/tonne.