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

SHANGHAI, May 5 (CBI China) -- On Monday, LME metal market was closed, today LME copper price moved downwardly in Asian electronic trading. Today, SHFE 908 contract copper price opened at RMB 38,330/mt, and then fell rapidly to RMB 38,000/mt. SHFE copper closed at RMB 37,380/mt, down 1.11% over the trading day. The trading volumes increased, while the position grew by 12,224 lots. Today, the spot price was in the RMB 39,900-40,100/mt range, with the premium of RMB 400-600/mt range. The downstream adopted wait-and-see attitude, so the transactions were moderate in the market.

    The US Department of Commerce announced on Monday that the US construction spending increased to USD 969.7 billion during March, up 0.3%, the largest increase since September 2008, with the estimated value of down 1.5% and the February level of down 1.0%. The National Association of Realtors (NAR) reported on Monday that the US pending home sales index increased to 84.6 during March, up 3.2%, the same as the prediction. The US home sales and construction spending were better than the prediction of analysts, an indication of economy recovery. The off-season for copper consumption will approach in May in domestic market, and the spot price will drag down LME copper price. Today SHFE copper received pressure at the important level of RMB 38,000/mt, and is expected to move widely in the short term.

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