LME copper prices opened at $9463/mt and closed with a drop of 0.98% at $9474.5mt last evening the low-end of $9412/mt and the high-end of $9495/mt. Trading volume stood at 27,000 lots. Open interest stood at 334,000 lots.
The most active SHFE 2406 copper contract prices opened at 76460 yuan/mt and finished at 76710 yuan/mt last evening, down 0.51%, with the low-end of 76310 yuan/mt and the high-end of 76740 yuan/mt. Trading volume was 49,000 lots, and open interest stood at 198,000 lots. On the macro level, European Central Bank President Christine Lagarde said that interest rates will be cut soon. ECB board member Villeroy also said that the ECB will cut interest rates as early as June 6. The US dollar index rose, which was bearish for copper prices. In terms of fundamentals, from the supply side, copper prices fluctuated at highs. Many refineries and traders had large amount of inventories, but were unwilling to lower prices sharply. In terms of consumption, high market prices continue to suppress demand. Except for on-demand purchases, most downstream companies are not very motivated to purchase. Spot trading was subdued. In terms of price, Europe and the United States will release a lot of economic data in the near future, and the probability of the US dollar index rising is relatively high. It is expected that there will be limited upward space for copper prices.
