[Cu] CBI Evening Review - 2009/6/15 Copper Market

SHANGHAI, June 15 (CBI China) -- Dragged down by rebounding US dollar, LME copper price fell from the high level last Friday. Today, SHFE copper 909 contract price opened at RMB 40,820/mt and then fluctuated around RMB 40,360/mt. Copper price continued to fall dampened by short investors in the afternoon, down 4.77% over the trading day. The trading volumes decreased slightly and the positions declined by 10,510 lots. A portion of long investors closed position after profit-takings.

    Data released by Eurostat on Friday showed that the industrial output in euro zone fell by 1.9% MoM during April, while Reuters survey predicted it would fall by 0.4%. The worse-than-expected industrial output in euro zone dampened the euro, but boosted the US dollar. SHFE copper inventories increased by 15,263 mt last week in view of domestic off-peak season for copper consumption during 3Q. In the mean time, the rebounding US dollar and weak domestic demand hampered copper price. Technically, today SHFE 909 copper contract price fell markedly, but will still remain high in the short term.

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