SMM Morning Review - 2010/1/12 Copper Market

SHANGHAI, Jan. 12 (SMM) -- The weaker-than-expected non-agricultural employment data in the US depressed the dollar, leaving the US dollar index at a low level. A surge in Chinese import data fueled market confidence. China's imports of unwrought copper and copper semis were 369.4 kt in December, up 27.30% from 290.2 kt reported in November. Moreover, China Securities Regulatory Commission's approval of the stock index futures trading also boosted the Chinese financial markets. SHFE copper market advanced all the way, helping drive up LME copper prices in Asian trading, with prices reaching as high as USD 7,700/mt. But prices fell back later due to the adjustment of capital funds weight, with prices finally ending at USD 7,567/mt, up USD 102/mt.

SMM believes copper prices will experience stable transition this week, and copper prices will climb steadily after previous significant corrections, but any upward momentum will be weaker compared with the previous strength.

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