Daily Report 110915 2015-09-11
Copper
Thursday overseas copper price fell after soaring and got bolster at the bottom. On macro side, initial jobless claims on the week of 5 September was 275,000 and leveled off with estimation, which verified US employment market continue stabilizing. Recent employment data included non-agricultural data in last Friday, Fed LMCI in Tuesday, JOLTS in Wednesday, all showed US labor market strong revived and was gradually moving toward full employment. Labor market data will impact on Fed interest rate raise decision; Fed September FOMC in next week will still impact market sentiment.
Back to copper market, LME spots premium $18.5, inventories decreased 2550 tons. Domestic spots discounted RMB 60 to RMB 20, increased RMB 10. Technically, there is rebound scope for copper price, LME five-day moving average system continues effecting and in domestic is RMB 40000. We do not exclude the possibility of copper price adjustment before Fed meeting.


PP
Yesterday PP futures fluctuated in low, opened at 7557 and ended at 7622; trading volume increased 187,000 lots to 928,000 lots; holding increased 36924 lots to 274,000 lots. In upstream, FOB Korea propylene decreased $15 and average price was $650.5/ton. On spots side, yesterday domestic PP market price was overall tended to loosen. Crude oil ended low which struck practitioners’ confidence. Petrifaction enterprises in Sinopec east China and south China reduced EXW, sources in low price decreased. Purchase enthusiasm in downstream plants was low and purchase as rigid demand; firm offer was limited.
Intraday main quoted prices for wires of north, east and south markets are RMB 7850-7950/ton, RMB 8000-8150/ton and RMB 7900-8160/ton, respectively.
As for operation side, current moving average system was twined as fluctuation trend; short and long factors were complex presently. It was likely to continue consolidation in the near future. We recommend wait and see a clearly market.
 
 
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