[Cu] CBI Evening Review - 2009/4/8 Copper Market

SHANGHAI, Apr. 8 (CBI China) -- Overnight LME copper continued to rise due to the increases in cancelled warrants and declines in inventories. Today, SHFE copper 0907 contract opened at RMB 35,660/mt, and then rose to RMB 36,000/mt with fluctuations after short-term adjustments. Then the price fell sharply and closed at RMB 35,300/mt, up 0.23% during today. The trade volume increased significantly compared to last trading day, and the position increased by 8,644 lots. Today, the spot price was in the RMB 38,700-38,900/mt range, with the premium in the RMB 900-1,100/mt range. The transactions were better in spot market, with limited supply, so the spot goods were best-selling.

    Recently, the LME copper cancelled warrants continued to increase to 60,850mt on Tuesday, leaving to declines in inventories, which created support to the international copper price. The tight spot supply supported the SHFE copper price. However, the high SHFE/LME copper price ratio will stimulate the imports, which will deliver pressure to copper price in the long term. today, SHFE copper 0907 contract rose to RMB 36,070/mt with downward pressure, but it continued to maintain upward trend, so SHFE copper price will move in the high level in the short term.

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