SHANGHAI, Oct. 29 (SMM) – Last Friday, LME copper prices still presented a weak trend and dipped as low as USD 7,756/mt. Later, the US 3Q GDP data was up 2.0% to USD 13.6162 trillion, above 1.9% expected. Personal consumption expenditures, government spending and residential fixed capital investment have offset the negative impact of trade deficit, non-residential fixed capital investment and private sector inventories on GDP. Thus, the US equities stabilized, and LME copper prices increased to the opening prices to end at USD 7,822/mt, with strong resistance at the 5-day moving average. The global economic slowdown and the European debt issues reignited market concerns and LME copper prices have fallen as much as 5.2% during the past three weeks. Copper prices are expected to remain weak in the short term given the feeble market fundamentals.
On October 29, SHFE copper prices may test support at RMB 56,500/mt, with SHFE 1302 copper contract price expected to be between RMB 56,300-57,400/mt. In spot copper prices, spot discounts over the SHFE 1211 copper contract price may be RMB 150-250/mt.