SHANGHAI, Jul. 25 (SMM) –Last Friday, copper output at Chile's Escondida, the world's largest copper mine, lost 3,000 mt copper, which was valued USD 3 million due to contract worker's 24-hour strike. Meanwhile, European leaders on the same day agreed to extend the second round bailout plan for Greece and take new measures to avoid a contagion of the sovereignty debt in the Euro-zone area, both helping improve market sentiment and support LME copper prices. However, the process of US debt ceiling negotiations was slow, and the deadline of August 2rd approached, which caused traders to become cautious towards trading. In this context, trading volumes for LME copper contracts decreased below 10,000 lots, limiting copper price gains. In response, LME copper prices mainly fluctuated during the European and American trading hours, and finally closed at USD 9,682/mt, up slightly USD 40/mt.
During Monday's Asian trading hours, the US dollar index tends to rally, and will challenge 74.4 points. Technical indicators continue to point downward as LME copper prices fail to break last Friday's three kinds of resistance, but well-support of the euro's low-end at 60-day moving average will restrict the US dollar index to move upward. Copper prices on the Comex also seemed to increase, and a drop in copper supply will also create support for LME copper prices. Hence, LME copper prices will advance after initially falling, with prices expected between USD 9,620-9,720/mt. In domestic market, cash will probably be withdrawn from the market as it nears the end of the month this week, and financial markets will be weak, which will drag down SHFE copper prices. Therefore, SHFE 1110 copper contract prices will move between RMB 71,700-72,500/mt.