[Cu] CBI Evening Review - 2009/4/2 Copper Market

SHANGHAI, Apr. 2 (CBI China) -- Yesterday, the manufacturing index announced by the U.S. Institute for Supply Management (ISM) was better than expected, so overnight LME copper price moved in the high level before the G20 summit. Today, SHFE copper 0907 contract opened at RMB 33,550/mt in the early trading, and then rose rapidly to RMB 33,850/mt, and rose again the closing trading after moved in the range. SHFE copper closed at RMB 34,140/mt, up 2.15%. The trade volume increased compared to last trading day, with position up 14,220 lots. Today, the spot price was in the RMB 35,400-35,600/mt range, with premium in the RMB 300-500/mt range. The resource supply was tight in spot market, and the spot premiums increased further, so the upstream producers were still reluctant to sell.

    The U.S. Institute for Supply Management (ISM) announced on Wednesday that the manufacturing index was 36.3 during March, with 36.0 of market expectation. The National Association of Realtors (NAR) announced that the pending homes sales index during February increased by 2.1% to 82.1, with the prediction of up 1.0%. The recovery of economic data helps support the copper price, and the investors were optimistic about the stimulus plan which may be reached in G20 summit. The spot supply remained tight in domestic market, which delivering support to copper price. SHFE copper will test the previous resistant level again in the short term.

Copyright ? 2009, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: metalresearch@cbichina.com or tel:86-21-51550040