[Cu] CBI Evening Review - 2009/6/23 Copper Market

SHANGHAI, June 23 (CBI China) -- LME copper price plunged last night negatively affected by stronger US dollar and demand concerns. Today, SHFE 910 copper contract price opened at RMB 37,000/mt, and then fell to RMB 36,900/mt, with limited trading volumes, and then the price began rebounding and won previous losses before closing. The positions continued to increase.

    Word Bank released the report on Monday that the global economic outlook remains very uncertain despite some signs of economic recovery, and the Bank also predicted the global economy will contract 2.9% in 2009, more than its March forecast value. The Word Bank forecast of deeper global economic recession increased the demand for US dollar hedge, and the rebounding US dollar weighed on copper prices. Technically, SHFE three-month contract price received some support when it fell to 60-day average line today, and any downward room is expected to be limited for copper price.

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