Reuters Review on May 13

LME Market: The London Metal Exchange (LME) copper fell 3% on Friday and fell 6.8% in the past three days, as the surge in the US dollar prompted the fund to sell its commodities. Three-month copper futures closed at $3,002/ton in late-night composite trading, compared to yesterday's Fall 94. BaseMetals.com analysts said, "The overall commodity seems to be falling, oil and precious metals are also falling along with the base metals." "The economic growth rate is lower than expected, interest rates tend to rise, and the dollar is strong, it seems that they are jointly suppressing Funds demand for commodities. "The stronger US dollar after the US released unexpectedly strong retail sales data on Thursday, which is the reason for the current decline in commodity prices. One trader said, "Today copper has triggered stop loss orders many times, The market still tends to fall, especially as the dollar strengthens. The initial support is at 2,950 and then 2,900; but if the dollar continues to rise, copper may continue to fall." Analysts pointed out that there are closer copper shipments to China and this week. Industry data shows that the surplus production of refined copper in the world in the first two months of this year weighed on the market. However, the good economic data released by the United States theoretically helps to support metal prices, which implies that demand will remain stable. The United States is the world's largest metal consumer. Traders said that in addition to the recent contract price distortions of nickel and tin, the outlook for other metals is also bearish. Three-month aluminum closed at 1,717 US dollars per ton, down 30. Three-month period Zinc fell by 20 US$ to 1,224. Three-month lead fell by 9 US dollars to end at 925. Three-month nickel fell by 300 to 16,500, with spot premium of 1,050 US dollars. Three-month tin fell by 90 US dollars to 8,050 tons per minute. Copper: Copper futures on the New York Mercantile Exchange (COMEX) closed down on the 13th, mainly due to the strength of the US dollar, speculative fund long closing activity and technical selling pressure. On the 13th, COMEX July copper fell 235 points to close at 135.25 cents/lb. The contract fell to a low of 134.40 cents/lb for the time being, down 1180 points from the high of 146.20 cents/lb at the beginning of this week (May 9th week). The U.S. dollar exchange rate has strengthened since the 11th. The U.S. trade deficit in March was reduced to 54.99 billion U.S. dollars on the 11th, and the U.S. April retail sales data released on the 12th exceeded expectations, all of which strongly promoted the U.S. dollar to rise against the euro. The US dollar rose to 1.2617 US dollars against the euro on the 13th, hitting a record high since October 2004. The strength of the U.S. dollar pressures copper prices. In addition, traders said that the news of the increase in weekly copper inventories on the Shanghai Futures Exchange also put pressure on COMEX copper. The COMEX copper price was also affected by the London Metal Exchange (LME) three-month copper price falling below the 200-day moving average on the 13th. LME three-month copper also fell below 3,000 US dollars / ton on that day, for the first time since February has fallen below this level. Expected COMEX July copper support at 134 cents, 131 cents, 130 cents; resistance at 138 cents, 142 cents

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