[Cu] CBI Evening Review - 2009/6/18 Copper Market

SHANGHAI, June 18 (CBI China) -- LME copper price rose slightly boosted by weakened US dollar. Today, SHFE copper price moved downward, with 909 contract copper price opening at RMB 39,300/mt and then failing to break RMB 39,470/mt. The growth rate of SHFE copper price was 0.74%, and the positions declined by 9,638 lots.

    The U.S. Department of Labor announced on Wednesday that the May consumer price index increased by 0.1%, lower than the market forecast of 0.3%. Consumer price index declined by 1.3% compared to the same period last year, hitting the largest decline over 60 years. Data shows the growth rate of inflation in May was slower than expected, indicating the interest rate will remain low for some time. The market players believe there will be less possibility the Fed will raise the interest rates, dampening the US dollar, while the weakened US dollar showed some support for copper price. Technically, SHFE 909 contract copper price moved around 20-day average line narrowly, and is expected to remain high in the short term.

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