SHANGHAI, Nov. 28 (SMM) –HSBC's China PMI fell to a 32-month low, severely depressing speculative activity. Combined with the slump in US stock markets, Chinese stock markets fell by more than 1% for the week and the Shanghai Composite Index struggled at 2,400 points. SHFE copper prices remained more resilient and rallied quickly after hitting a low of RMB 52,510/mt. Both long and short investors made intraday transactions, and as of November 24th, trading volumes were up 1 million lots from the previous week.
SHFE copper prices are expected to remain firm at RMB 52,000/mt and test support at RMB 53,000/mt in the coming week.
In spot markets, the SHFE/LME copper price ratio rose above 7.45 and created arbitrage opportunities for copper importers. As a result, imported copper traders were actively moving goods, which expanded the price gap with domestic high-quality copper to between RMB 200-300/mt. Downstream producers were still purchasing on an as-needed basis.
For queries, please contact Michael Jiang at michaeljiang@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn