[Cu] CBI Evening Review - 2009/6/3 Copper Market

SHANGHAI, June 3 (CBI China) -- LME copper price faced corrections due to profit-taking. Today, SHFE 909 contract copper price moved upward from low open price, then rose rapidly driven by strong SHFE aluminum price in the afternoon and finally closed at RMB 40,720/mt, up 1.6%. The market transactions shrank slightly, and the positions increased by 40,330 lots. 

    The National Association of Realtors reported on Tuesday that the US existing home sales index in April rose by 6.7%, while the analysts predicted it would rise by 0.5%. The market players predicted the US would issue large volumes of bonds, which will weaken the status of the US dollar, so the US dollar continued to weaken, leaving support for metal prices. This round of rise had nothing related with consumption, but was due mainly to the market forecast of inflation. Domestic downstream industry entered seasonal low consumption period, so weak demand will hamper copper price. Technically, today SHFE 909 contract copper price moved above RMB 40,000/mt and will continue to fluctuate around RMB 40,000/mt in the short term.

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