SMM Morning Review - 2010/12/31 Copper Market

SHANGHAI, Dec. 31 (SMM) – According to official data, new US claims for jobless benefits fell to the lowest level since July 2008, and the US Chicago PMI rose unexpectedly in December, both showing a positive trend of economic recovery in the US. As a result, market risk sentiment increased. The US dollar index closed down to 79.45 yesterday, a two-week low. In this context, LME copper market finished up at USD 9,542/mt. Trading volumes were up 1,923 lots, and positions were up 1,148 lots. LME copper prices continued to rise during the European and US trading hours after gains during the Asian trading hours, but it is worth noting that LME copper prices failed to climb above the high level of USD 9,550/mt set during the Asian trading hours. LME copper price gains during the US and European trading hours were not as strong as those during the Asian trading hours in recent days.

LME copper prices have climbed above the USD 9,500/mt mark, but will experience consolidations at the mark in the short term. In addition, the arrival of the New Year holiday will add to price risks. Hence, LME copper prices are expected to move between USD 9,450-9,560/mt during Friday’s Asian trading hours, and SHFE three-month copper contract prices will fluctuate in the RMB 70,500-71,800/mt range on Friday.  

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