[Cu] SMM Morning Review - 2009/9/3 Copper Market

SHANGHAI, Sept. 3 (SMM) -- The economic data from the US indicate the economic recovery, and the US stock markets advance slightly after three-day declines. In the context, LME copper prices stabilized at USD 6,025/mt after constant declines. LME copper three-month contracts prices closed at USD 6,190/mt, up USD 5/mt. LME copper inventories increased by 3,000mt, bringing total inventories to 302,950mt. SHFE copper prices are expected to open high slightly, and will keep fluctuating today.

    Copper prices slumped to USD 6,025/mt from USD 6,510/mt during the first three day of this week. In the mean time, the plunge in domestic A-share stock markets dampened the optimistic market sentiment, generating the intensified struggles in the market. Copper prices will continue to move in the USD 5,950-6,500/mt range.

    As to macro economic data, The US ADP Employer Services released a report on Wednesday that the number of employment in private sector fell by 298,000 during August, while this number was revised to a decline of 360,000. The US Commerce Department announced last night that the factory orders in July increased by 1.3%, with market forecast of a 2.2% growth. The durable goods orders in July were revised to be a 5.1% growth, while the initial data was a growth of 4.9%.

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