Reuters commentary (April 21st)

The LME market, the London Metal Exchange (LME) copper prices fell by nearly 2% on Thursday, and the market’s concern about China’s cooling of the economy erased the previous increase of copper futures. One trader said, “After rising on Wednesday, Today's market trend is purely psychological. Traders had originally expected that copper will continue to rise, but it has fallen by 40 US dollars. The market will then take action to protect the profit. The narrowing of the recent contract price gap narrowed the incentive to sell. "Published yesterday in China After strong economic growth data, the market rumors that China may revalue the renminbi exchange rate and crack the copper trend in the Asian market. However, Chinese Foreign Minister told Reuters on Thursday that before changing the fixed exchange rate system, China will consider this move to the economy and neighboring countries. In the United States, copper traders ignored data on the number of jobless claims in the United States last week. However, U.S. Federal Reserve Chairman Greenspan said in a speech to the Senate Budget Committee on Thursday. If no measures are taken to control the growing fiscal deficit of the United States, the US economy will face stagflation or worse. According to Reuters data, since November 2003, The copper's persistent inverse price gap marked the start of the copper bulls' trend. It rose sharply after the price rose above $2,000. LME copper stocks increased by 1,875 tons on Thursday. Spot/three-month copper spreads reached $190/tonne. This was higher since the beginning of 1997; however, it narrowed to 155 at the close of the evening market composite trading. The three-month nickel overnight comprehensive trade closed at 15,800 yuan per ton yesterday at 16,025 US dollars. The three-month zinc fell by 26 US dollars to 1,300. The three-month lead decreased by 8 US dollars to 942. Three-month tin fell by 25 US dollars to 8,175. Three-month copper futures closed at 3,250 US dollars per ton in the evening market, lower than yesterday's 3,307, and far away from the April 12 touch. The record high of 3,336/38. Three-month aluminum fell 31 U.S. dollars to 1,858 yuan per tonne. COMEX copper--Commercial Futures Exchange (COMEX) copper closed down on Thursday; traders said that the market is worried about the Chinese government. Action will be taken to cool down stronger-than-expected economic growth. Copper futures rose on Wednesday due to China's strong GDP data, but it has pared gains today. Traders said intraday trading was sluggish. Indicators May. Copper fell 2.60 cents to 1.48 per pound At 35 US dollars, it once fell to a low of 1.4715 during the session. Spot copper fell 2.05 cents to April, closing at 1.4965, taking back gains on Wednesday. Other monthly contracts fell 2.00-2.50 cents. 40,000, of which 10,945 were renewed transactions. The prior notice date for the May contract was on April 29, and many traders extended it to the July contract. Due to the many speculative transactions on Wednesday's buying, there were Some parts were rolled flat. Later in the session, the manufacturing index released by the Federal Reserve Bank of the United States rose sharply, helping to push up copper prices.