[Cu] SMM Morning Review - 2009/9/2 Copper Market

SHANGHAI, Sept. 2 (SMM) -- Last night, the US stock markets slumped, generating the sell-off activities of investors. In the mean time, investors switched to US dollar for risk aversion, resulting in rising US dollar index. In addition, the plunged Chinese A-share stock markets also generated buyers' concerns on Chinese demand. In this context, LME base metal prices closed down, and LME copper three-month contract prices closed at USD 6,185/mt, down USD 325/mt, and LME copper inventories increased by 1,025mt, bringing total inventories to 299,950mt. Copper prices continued to move in the USD 5,900-6,500/mt range, since the wait-and-see attitude dominated the market after copper prices soared previously. Today, SHFE copper prices will move downward negatively affected by significant declines in LME copper prices.

    As to macro economic data, The US Institute for Supply Management (ISM) announced on Tuesday that the manufacturing index in August was 52.9, higher than 50 for the first time since January 2008, with estimated index at 50.5. The US Department of Commerce released on Tuesday that the US construction spending in July reduced by 0.2% to USD 958 billion, flat at economists estimated level, while the construction spending in June was revised to a 0.1% growth from a 0.3% growth, partly offsetting the positive impact from upbeat manufacturing index.

Copyright © 2009, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: metalresearch@cbichina.com or tel:86-21-51550040