Daily Report 281215 2015-12-28
Last week copper trading and investing was thin, copper price narrowly fluctuated. On macro side, China November industrial enterprises above designated size realized total profit at RMB 5.53868 trillion, decreased 1.9% year-on-year and, narrowed 0.1% compare to January to October. Macro economy data showed reviving sign gradually, the prior macro control policy started to show the effect; we held full of hope on next year economy at the coming new year. On copper market side, last Friday London market was closed since the Christmas holiday; last week three major exchanged copper inventory increased 7072 tons, including LME increased 3725 tons, SHFE increased 3223 tons. Technically, copper price might continued fluctuated nearing new year; if LME effectively rose above $4750, next target was $4900; domestic copper resistance still at RMB 36350, RMB 38000.
Last week PP futures rose. On upstream side, up to Thursday night, FOB Korea propylene average price was $590.5/ton. On device side, this week PP operate ratio was about 90.58%, slightly lower than prior week. On spots side, last week domestic PP market bolstered from the bullish rallied futures and limited circulated supplies in the end of month, downstream plants covered in appropriate amount, drove the price edged up, trading slightly improved.
Current main quoted prices for wires of north, east and south markets are RMB 6300-6400/ton, RMB 6450-6650/ton and RMB 6600-7150/ton, respectively.
As for operation, current moving average system turned to upward, MACD exposure up extended but, recent price was approaching 6000 integer, upward momentum shrunken; market might repeated. We recommended prior long positions may temporally stopped profit and closed the positions according to market momentum.
                                                                                      Dong LV (Investment Certificate NO. TZ008452)