[Cu] CBI Evening Review - 2009/4/10 Copper Market

SHANGHAI, Apr. 10 (CBI China) -- Overnight LME copper hit a record high again due to continuous declines in the inventories and the recovery of U.S. stock. Today, SHFE copper 0907 contract opened at high price of RMB 37,720/mt in early trading, then the price rose rapidly with 904-906 contract increasing to the limit within half an hour; 907 contract also increased to the limit after moving in the RMB 38,000-38,190/mt range. SHFE copper closed at RMB 38,190/mt, up 498% over the trading day, the volume shrank slightly compared to previous trading day, with position down 3,422 lots, and some contracts transferred to 908 contract. Today, the spot price was in the RMB 41,500-41,700/mt range, with premium of RMB 460-660/mt range. Sources report that the imported spot copper which was scheduled to arrive on April 20th will not arrive on time, so the spot market will remain tight.

    Wells Fargo Bank predicted on Thursday that it will achieve net profit of USD 3 billion in 1Q, leaving some hopes to the financial industry, and the initial claims for unemployment benefits in the U.S. declined to USD 6.54 billion. The recovery of economy stimulated the buying sentiment. Spot copper supply continued to be tight in domestic market, and SHFE inventories experienced declines for several consecutive weeks, indicating the current strong consumption, so the peak season for consumption and strong spot goods drove up SHFE copper significantly. SHFE copper will remain strong in the short term.

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