[Cu] CBI Evening Review - 2009/4/13 Copper Market

SHANGHAI, Apr. 13 (CBI China) -- LME market was closed during last Friday and this Monday, today, SHFE copper opened at high, and has ever hit the increasing limit, but then it continued to move around RMB 40,000/mt. SHFE copper closed at RMB 40,190/mt, up 5.85% over the trading day, the trade volume increased compared to previous trading day, and the position declined by 15,892 lots, signaling the profit-taking of long investors. Today, the spot price was in the RMB 44,740-44,840/range, with the premium of RMB 900-1,000/mt. The transactions were limited in spot market due to price hike, and the supply was mainly imported copper.

    The People's Bank of China announced that the new loans in March hit a record high again, up RMB 1.89 trillion. The RMB loans increased by RMB 4.58 trillion during 1Q, closing to 90% of the government target of RMB 5 trillion. In the mean time, the industrial production increased by 8.3% during March, and began rebounding from the low level during the first two months. The recent positive economic data helped support the copper price, and China Customs released that the imports of unwrought copper and copper products reached RMB 375kt during March, hitting a record high, and the high spot premium helped pick up the market sentiment. SHFE copper is expected to remain strong in the short term.

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