[Cu] CBI Evening Review - 2009/4/9 Copper Market

SHANGHAI, Apr. 9 (CBI China) -- Overnight LME copper rebounded and continued to be on upward track stimulated by the U.S. stock rebound. Today, SHFE copper 0907 contract opened at RMB 35,840/mt, then rose to RMB 36,000/mt rapidly, and then experienced a round of declines, and rose again in closing trading. SHFE copper closed at RMB 36,800/mt, up 3.63% over the trading day. The trade volume shrank slightly compared to previous trading day, and the position increased by 11,376 lots. Today the spot price was in the RMB 39,550-39,750/mt range, with the premium of RMB 450-650/mt. The transactions were moderate in spot market, and the premium has ever been as high as RMB 800/mt, but then shrank along with the rising futures price. As the spot price was nearly RMB 40,000/mt, the downstream producers were more cautious about the purchase.

    The economic data were mixed. The MoM rate of core orders increased by 1.4% during February in Japan, indicating the Japanese economy experienced the recovery for the first time after the economic recession; however, the YoY rate declined by 30.1%. Chinese tight spot supply helps copper price to rise. Today, SHFE copper 0907 contract will remain on upward track.

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