[Cu] CBI Evening Review - 2009/6/9 Copper Market

SHANGHAI, June 9 (CBI China) -- Overnight LME copper price fell slightly dragged down by stronger US dollar. Today SHFE copper remained high, and SHFE 909 contract copper opened at RMB 41,080/mt, but then fell rapidly to RMB 40,220/mt. Copper price rebounded in the afternoon boosted by the rising domestic stock markets, and the market transactions were very active, with the trading volumes exceeding 1 million lots and the position up 19,030 lots.

    Currently, the firm futures price of crude oil delivered strong support for copper price. However, the rebounding US dollar and the weak downstream demand during seasonal low consumption period will hamper copper price. Technically, SHFE 909 contract will continue to fluctuate in the high level and will receive some support at 5-day average line. Copper price is expected to move around RMB 40,000/mt in the short term.

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