SHANGHAI, Oct. 30 (SMM) – The latest data show that LME copper inventories rose 20,650 mt to 240,450 mt overnight, driving LME copper prices to slip. Although the US economy staged faster growth that expected and the consumer expenditure for September increased sharply, the Chicago Fed Midwest Manufacturing Index dropped MoM in September. In addition, with hurricane Sandy moving toward northeast coast of the US, the US equity market was closed Monday, and should remain off on Tuesday, leaving consumption of commodities thin. Meanwhile, Spain’s September retail sales fell at the fastest pace, but the country still showed no intention of applying for bailout. That, combined with the uncertainty about the implementation of austerity measures in Greece, dragged down high risk assets and drove up the US dollar. In this context, investors left market to avoid risk, lowering long positions in copper. LME copper prices thus hit a low of USD 7,670/mt, the lowest since September 6, and closed at USD 7,724/mt.
SHFE 1302 copper contract price are expected to move between RMB 55,800-56,200/mt on Tuesday. Spot discounts over the SHFE 1211 copper contract price may be RMB 80-150/mt.