SHANGHAI, Jun. 10 (SMM) – On Monday, the People’s Bank of China announced a 0.5 percentage point cut in reserve requirements for banks with their proportion of loans issued to smaller enterprises and agriculture meeting requirements, giving a boost to the market. Further monetary easing in the euro zone also helped 10-year bond yields in Spain, Ireland and Italy to hit record lows. Russian stocks also rebounded.
LME copper prices, however, were still affected by the investigation at Qingdao port, as metal delivery at the port has reportedly been suspended, and the probe into port stocks may be extended into other bonded zones, including those of Shanghai. LME copper prices closed USD 34/mt lower at USD 6,674/mt.
SHFE 1408 copper contract prices started at RMB 47,470/mt during Monday’s night session and finished down RMB 60/mt at RMB 47,620/mt. Traded volumes for the most active SHFE copper contract were about 160,000 lots, while positions increased 5,900 lots. Some investors entered the market when prices fell.
On June 10, the SHFE copper for August delivery may trade at RMB 47,300-47,900/mt. Copper premiums in China may narrowed to RMB 0-100/mt against SHFE 1406 copper contract prices, with spot discounts possibly be reported.