LME copper prices closed at $8,441/mt last evening, up 1.85%. Trading volume was 24,000 lots and open interest stood at 252,000 lots. The most active SHFE 2307 copper contract finished at 67,900 yuan/mt overnight, up 1.33%. Trading volume was 46,000 lots and open interest stood at 189,000 lots.
On the macro front, after the data released last night showed that the increase in consumer prices in the US in May was lower than market expectations and slowed down, the market strengthened its bet that the Fed will keep interest rates unchanged, and the US index fell sharply. Sellers refrained from selling at lows ahead of the delivery.
The overall transaction in east China was limited. Some imported copper has flowed into the Guangdong market, and the inventory has increased slightly. With the rise of copper prices and weak end-user consumption, downstream buying interest was weak. High spot premiums also inhibited the downstream desire to purchase.
Copper futures prices rebounded due to greater expectations of the Fed slowing down interest rate hikes.
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