Daily Report 150415 2015-04-15
Gold

Main contract of domestic gold AU 1506 reached to a high level and then fell back in the night session. In terms of trend, the gold is believed to remain a downward trend afterwards. Attention should be paid to 20-day moving average at RMB 240.5. In short term, the gold has been correcting for 13 trading days. Sound investors should focus on the operational opportunities after the region between RMB 244 and RMB 240 is broken through. The US economic data recently is mixed. The retail data in March is not as good as expected but the PPI rallied, indicating the economy is getting better. On the other hand, the IMF lowered the expectation of the US economic growth rate. The US dollar index increased to a high level and dropped afterwards. The overnight gold ETF positions was up by 1.79 tons, indicating the funds are interested in the gold under ﹩1,200. On the whole, trading in the gold market is relatively cautious recently, waiting for the following US economic data to be released.


Copper

On Tuesday LME copper price was supported at $5900 on 10-week moving average which withdraws the major intraday loss. It closed at $5945, down $39. Domestic copper price in July closed at RMB 42930.
From the fundamental aspect, LME spots premium fell back $5 to $10; the inventory level increased 3700 tons to 33,7000. In domestic copper spots market, the premium fell back RMB 20 to premium RMB 20-70. Technically, copper price seems with support but in short term investors should pay attention the risk; we suggest setting the LME copper price support price at $5800. We also suggest setting the support price of domestic copper in June at RMB 42000.


PP

Yesterday PP futures price waving down, it opened at RMB 8398 and closed at RMB 8332. The turnover dropped 17,1000 lots to 65,8000 lots; the holdings increased 24328 lots to 45,0000. In upper stream, FOB Korean propylene increased $10 to average price 1015.5 per ton. Current rate of operation remains the same as before.
For instance of the wire drawing price, today's mainstream of North China bid in RMB 8900-9000 per ton, East China mainstream quotation in RMB 9050-9200 per ton, South China mainstream quotation in RMB 9000-9300 per ton.
                                                                              Dong LV (Investment Certificate NO. TZ008452)