SHANGHAI, Oct. 14 (SMM) – A slip in LME copper allowed SHFE 1512 copper to start lower at RMB 39,700/mt on Tuesday night. SHFE copper tested a low of RMB 39,540/mt and later advanced to RMB 39,930/mt answering to crude oil prices. But later crude oil prices ended down almost 2% and this led to SHFE copper to retreat all the gains. Finally, the red metal closed RMB 120/mt or 0.3% lower at RMB 39,650/mt. Positions fell 302 to 231,454 with trading volumes around 185,000 lots.
SHFE copper refreshed Wednesday’s new low to RMB 39,540/mt due to downbeat expectation for China’s PPI and CPI data. Later, the contract rebounded thanks to Chinese stock rally but then fell back again due to resistance at the 5 and 20-day moving averages and a slump in Chinese stock. The red metal finally ended down RMB 140/mt or 0.35% at RMB 39,630/mt. Positions saw a slip of 1,016 to 230,740 and trading volumes totaled 395,000 lots.
China’s PPI for September dropped for 43 consecutive months by 5.9% YoY while CPI grew1.6% from a year ago, missing forecast and August’s. This also showed deflation pressure in China.