SHANGHAI, May 27 (CBI China) -- LME copper price moved upward due to better than expected US consumer confidence index during May and strong US stock markets. Affected by LME copper market, SHFE copper 908 contract price opened at RMB 37,010/mt, and then faced resistance when it tried to break RMB 37,000/mt for several times. SHFE copper price rose rapidly in the afternoon and closed at RMB 37,180/mt, up 1.06%. The trading volumes continued to shrink, and the total positions declined by 21,596 lots. Today, the spot price was in the RMB 37,400-37,600/mt range, and the spot premium has narrowed to RMB 150-300/mt, and the transactions were weak in the market.
The Conference Board announced that the US consumer confidence index during May rose to 54.9, a new high over eight months, while the consumer confidence index was revised to 40.8 from 39.2 during April. The US consumer confidence index during May was better than expected, offsetting the investor concerns over the rumor that the State Reserve Bureau will sell 50kt of copper. Meanwhile, the strong US stock markets and rising crude oil price also supported copper price. However, the domestic market entered the seasonal low demand period, so weak demand in copper market will hamper copper price to rebound. technically, today three-month SHFE copper contract price broke the resistance level of RMB 37,000/mt, but the significant declines in position hints the investors closed position before the holiday, leading to limited upward room for SHFE copper price in the short term.
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