[Cu] CBI Evening Review - 2009/6/29 Copper Market

SHANGHAI, June 29 (CBI China) -- LME copper price fell last Friday dampened by the profit-takings of long positions by the end of 2Q. Today, SHFE copper price continued to fluctuate higher. SHFE 910 contract copper price opened at RMB 40,020/mt in the morning, and then met resistance when soared to RMB 40,740/mt. After that, SHFE copper price fluctuated narrowly, with daily growth rate of 1%, and the positions continued to increase sharply.

    The US consumer spending and income during May reported increases, due to the spread effect of government incentives, but most funds have been saving up, and the amount of saving has jumped to a record annual rate of USD 768.8 billion, the highest level since 1959. The rising saving rate triggered the market concerns that if the consumers increase savings rather than consumption, which will have a negative impact on the process of economic recovery. Technically, SHFE copper price will continue to move upward to break previous high level, but will find greater downward pressure.

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