SHANGHAI, Oct. 18 (SMM) – According to the US Commerce Department, US September housing starts were 872,000 units, much higher than the forecast of 770, 000 units, up 15.0% compared to August’s level, and a record high in four years. Copper is widely used in the building water heating industry, and the rising US housing data enhanced market confidence towards copper demand. As a result, LME copper prices were boosted and hit USD 8,233/mt. At the end of trading, the market concerned over China’s 3Q GDP to be released on Thursday and whether the EU summit will move towards resolving of European debt crisis, limiting increases of LME copper prices. Finally, LME copper prices closed at USD 8,212/mt, up USD 70.3/MT.
Today the US dollar index should fluctuate around 79, and LME copper prices are expected to move between USD 8,150-8,250/mt during Asian trading hours. The Shanghai Composite Index will continue to fluctuate. SHFE 1301 copper contract prices should move between RMB 58,600-59,400/mt. Spot discounts against SHFE 1211 copper contract prices should be between RMB 100-200/mt.