SMM Morning Review - 2010/5/6 Copper Market

SHANGHAI, May 6 (SMM) --On Wednesday, Moody's warned Portugal of possible cuts for its credit ratings, and market worried Greek debt issues may spill over to other euro zone countries. In addition, the anti-austerity protests in Greece triggered market fears of the effect from the financial aid. In this context, the US dollar climbed higher, rising above 84. The commodity market broadly dropped following depressed crude oil prices. Crude oil futures for June delivery on the NYMEX dropped below USD 80/bbl. LME nickel prices led price declines of base metal markets following the news that strike in overseas nickel plants is expected to stop, down as much as more than 10% in the session. LME copper prices weakened to USD 6,643/mt in the session, the lowest level in recent three months. Supported by buying activities at the closing, LME copper prices finished at USD 6,960/mt, down USD 53/mt.

Despite of weak performance on the LME copper market, a trend of rebounding is available at the closing. Therefore, SMM believes SHFE copper prices will move between RMB 56,000-57,000/mt on Thursday.

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

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