[Cu] CBI Evening Review - 2009/4/28 Copper Market

SHANGHAI, Apr. 28 (CBI China) -- Overnight LME copper experienced sell-off due to the spreading swine flu. Today, SHFE 908 contract copper price opened at RMB 34,800/mt, and remained in the RMB 34,700-35,000/mt range, and then experienced a round of plunges at noon. SHFE copper closed at RMB 34,120/mt, down 1.95% over the trading day, the trading volumes improved and the position increased by 7,166 lots. Today, spot price was in the RMB 38,200-38,500/mt range, with spot premium of RMB 800-1,100/mt. The spot premium growth slowed, and the downstream demand became weak, leading to sluggish transactions in the market.

    Currently, the negative impact of swine flu in Mexico on the global economic recovery remains unknown. If swine flu existsfor a long time, it will exert significant influence on the global tourist industry and international trade, which will drag down the economic recovery. Market rumor reports a large volume of refined copper arrived at the port, weighting on SHFE copper price. SHFE three-month contract copper price continued to face corrections, and is expected to fall further in the short term.

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