SMM Morning Review - 2010/3/31 Copper Market

SHANGHAI, Mar. 31 (SMM) -- LME copper market overnight followed up its previous rising trend, despite of strong US dollar, with prices closing up for fourth consecutive day. The euro weakened as the price of 7-year bonds issued by Greece only on Monday tumbled, helping the US dollar index to climb above 81.55 from 80.99. The rising US dollar, however, failed to cap the upward momentum of LME copper prices, as improved consumer confidence data in the US and demand optimism from continuing declines in inventories both boosted LME copper prices. LME copper prices reached as high as USD 7,835/mt, with prices closing at USD 7,830/mt, up USD 30/mt.

Despite of strong performance in LME copper market, SHFE copper prices failed to keep up the rising trend, plagued by weak spot consumption. SMM believes SHFE copper market will remain weaker than LME copper market given existing high market inventories.

To contact the writer on this report: iriszhu@smm.cn

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