LME copper prices closed with a drop of 0.06% at $8,173/mt last evening. Trading volume stood at 20,000 lots. Open interest stood at 274,000 lots. SHFE 2309 copper contract prices closed at 67,810 yuan/mt last evening, down 0.09%. Trading volume was 28,000 lots, and open interest stood at 156,000 lots.
On the macro front, the minutes of the Federal Reserve's July policy meeting highlighted that policymakers are still divided on whether to raise interest rates further, and more economic data guidance is needed.
In terms of fundamentals, spot quotes in east China surged yesterday, mainly because the price of copper fell below 68,000 yuan/mt, and downstream processing companies became more active in purchasing, resulting in a shortage of spot resources. South China region is also affected by the shortage of spot resources after the delivery, pushing up the premiums. However, with the warrants being offered for sale, the spot qutoes will fall back. Copper prices have fallen below recent lows, which will slightly boost demand in the near future. Due to the influence of macro sentiment, copper prices will have limited upside room in the near future.
