SHANGHAI, Oct. 24 (SMM) – On last Friday’s night trading, SHFE 1612 copper started at RMB 37,110/mt and soared to RMB 37,340/mt. But the contract later dropped back and closed at RMB 37,160/mt, up RMB 30/mt. Trading volumes were down 89,516 to 58,376 lots and positions were up 1,842 to 193,658.

Minmetals Non-ferrous Metals indicated that the company will shut down Las Bambas copper mine due to its confliction with Peru’s government on October 22. Copper production is predicted to fall. On Monday, Chinese yuan depreciated below 6.78, supporting base metals. SHFE 1612 copper started higher at RMB 37,180/mt and advanced to RMB 37,430/mt with positions opening by longs. The contract fell later due to exist of longs and finally closed at RMB 37,350/mt. Positions reduced 554 to 191,000 and trading volumes rose 80 to 148,000 lots. Positions of all SHFE copper contracts increased 7,546 to 451,524 with trading volumes up 10,641 to 270,000 lots. To sum up, SHFE 1612 copper rose with falling Chinese yuan on Monday.

Eyes should be on us Chicago Fed’s National Activity Index, which is expected to be higher than previous level on Monday’s night trading. Markit manufacturing PMI fresh data is expected to be higher than previous level. US dollar index will stay firm.

SHFE 1612 copper should drop to RMB 37,150-37,400 with LME copper on Monday’s night trading.