SHANGHAI, Oct. 30 (SMM) -- The US Department of Commerce reported on Thursday that the gross domestic product (GDP) in 3Q climbed at a 3.5% annual pace, while the previous forecast was a growth rate of 3.3%. Positively affected by the favorable US economic data, the US stocks experienced the highest daily growth rate within three months, which reduced the demand for US dollar risk avoidance, and the US dollar index fell below 76 as a result.
Base metal prices climbed generally, and LME copper prices closed at USD 6,664.5/mt, up RMB 234.5/mt. LME copper inventories declined by 325mt, bringing total inventories to 371,400mt. The positive US GDP data helped drive up LME copper prices to USD 6,600/mt and above again, and LME copper prices will face great pressure at USD 6,800/mt in the short term, but SMM predicts copper prices will fluctuate higher in the near future in view of production cuts at copper mines, worker strikes and the US dollar weakness.
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