SHANGHAI, May 19 (CBI China) -- Overnight LME copper price climbed due to strong US stock markets and soft US dollar. Today, SHFE copper price opened at high. SHFE 908 contract copper price opened at RMB 36,200/mt, then moved around RMB 36,000/mt, and then rose rapidly to the increase limit in the afternoon due to short-covering. SHFE copper price closed at RMB 36,860/mt, up 4.98% over the trading day. The trading volumes shrank and the position fell by 16,946 lots. Today the spot price was in the MRB 36,630-36,780/mt range, with the spot premium of RMB 300-450/mt. The premium for imported copper was around RMB 450/mt in spot market, and the downstream producers became cautious and the transactions were general.
The U.S. National Association of Home Builders announced the monthly report concerning the market forecast of the home builders, showing the single-family home sales index in May rose to 16, hitting a new high since September last year, hinting that the most difficult period of the home builders may be drawing to a close, leading to the sharp rebounding US stock. Today, SHFE copper price rose sharply due to short-covering. However, the approaching off-peak season for copper consumption and increasing imports and domestic output will weigh on copper price. Technically, SHFE three-month contract copper price soared, but met resistance at 10-day average lines, so SHFE copper price will fluctuate widely in the short term.
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