SHANGHAI, Aug. 23 (SMM) –LME copper prices on Monday initially climbed following the encouraging Chinese refined copper import figure for July, but the gains were quickly rolled back as investor fears over the US sluggish growth and worsening Europe's debt crisis forced European equities back down. Investors preferred to safe-haven assets like the US dollar and gold, which closed above USD 1,900/oz on Monday. As the US financial markets opened, there was a wave of sell-off, sending LME copper prices down to USD 8,750/mt. In general, daily trading volumes were muted, and due to no guide from economic data, LME copper prices closed down at USD 8,754/mt.
During Tuesday's Asian trading hours, the US dollar and euro are expected to fluctuate, and currency markets will have limited impacts on LME copper price trends. HSBC's China PMI data will be announced on Tuesday morning, which will be closed followed by markets. Besides, copper prices on the Comex rebounded in the morning, and crude oil prices also tended to increase due to tension in Libya, which will push up LME copper prices during the trading sessions. However, with resistance at RMB 8,800/mt and 8,820/mt, LME copper prices are expected to move between USD 8,750-8,870/mt. In domestic markets, despite a down close and a drop in trading volumes on Monday, Chinese stock markets but will open higher today due to rebounding US equity markets on Monday, but will still close down. The high-end SHFE copper prices will be lower than the previous trading day, and SHFE 1111 copper contract prices will move in the RMB 65,900-66,900/mt range.