[Cu] CBI Evening Review - 2009/5/4 Copper Market

SHANGHAI, May 4 (CBI China) -- Positively affected by the better US economic data and continuous declines in the inventories, LME copper price rebound significantly last Friday. Today, SHFE 908 contact copper price opened at RMB 37,500/mt, and then soared to the increasing limit RMB 37,860/mt, with fierce competition between long and short investors. SHFE copper closed at RMB 37,860/mt, up 5.99%, the trading volumes shrank slightly compared to previous trading day, while the position increased by 12,428 lots. Today, the spot price was in the RMB 40,000-40,200/mt range, with premium of RMB 490-690/mt. the consumption performed cautious in spot market during the first trading day after the holiday.

    The US announced last Friday that the ISM Purchasing Managers Index in April rose to 40.1, better than analysts’ predictions, Reuters / University of Michigan announced the final consumer confidence index in April was 65.1, with the estimated value of 61.9, an indication of the recovery of consumer confidence. The surprising strong US economic data boosted the market sentiment. The continuous declines in LME copper inventories and increases in the cancelled warrants indicated the outflow of inventory. The positive economic data and the declining inventory were the main factors for the copper price rebound. Today, SHFE copper rose sharply and is expected to test the previous resistance level of RMB 38,000/mt in the short term.

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