[Cu] CBI Evening Review - 2009/4/14 Copper Market

SHANGHAI, Apr. 14 (CBI China) -- LME market was closed on Monday - Easter Day, today, copper price opened at high and then fell in LME electronic trading. SHFE copper fluctuated downwardly today, and SHFE copper 907 contract opened at RMB 40,390/mt, then fell rapidly to the declining limit of RMB 3,800/mt, and then rose slightly. SHFE copper closed at RMB 38,580/mt, up 3.55% over the trading day. The market transactions were active, and the trade volume continued to increase, while the position declined by 11,508 lots, and the long investors closed position after profit-taking. Today, the spot price was in the RMB 42,700-42,900/mt range, with the premium of RMB 200/mt. The spot market price fell following the plunged futures price, and the traders were eager to move goods nearing the delivery, so the premium was narrowed significantly.

    As the domestic imports of scrap copper declined sharply after Chinese New Year, the producers used refined copper instead of scrap copper as raw materials, causing tight refined copper supply. However, the price spread between scrap copper and refined copper became wider, the imports of scrap copper will be likely to improve, then copper price will meet downward pressure. SHFE copper has risen for several weeks, while today the profit-taking of long investors caused the SHFE copper to fall sharply. From technical aspect, today SHFE 907 contract received support from 5-day average line, and SHFE copper will meet downward pressure in the short term.

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