SHANGHAI, Jul. 26 (SMM) –Market attentions overnight were still on Greek debt problems and stalled US debt ceiling negotiations. Investors shifted some of their assets to risk aversion commodities such as Swiss Franc and gold due to worries over possible failures of the US budget agreement and the downgrade of US credit ratings. Optimistic sentiments toward copper prices have also weakened this week, with both of trading volumes and positions for LME copper falling further. However, LME copper prices still rallied gradually and narrowed losses during Asian trading hours, as the strike at Escondida copper mine continued a fourth day and didn't seem to have a resolution, with prices finally closing at USD 9,678/mt.
During Tuesday's Asian trading hours, the US dollar index and euro will fluctuate narrowly, having a limited impact on LME copper prices. However, copper prices on the Comex tended to move upward in the morning business. In this context, LME copper prices will rebound first for some time, and then reach yesterday's high levels, with prices expected between USD 9,610-9,730/mt. In domestic market, stock markets are still negative, becoming one of major factors dragging down SHFE copper prices. Hence, SHFE three-month copper contract prices will meet profit-taking by the longs after opening higher at near below RMB 72,000/mt, and SHFE 1110 copper contract prices will move between RMB 71,400-72,300/mt.