SHANGHAI, Jun. 12 (SMM) – Global shares were weighed down Wednesday after the World Bank slashed its forecast for global economic growth. China’s Ministry of Finance said its financial revenue increased 7.2% YoY in May, but income tax from real estate companies declined for a fourth month straight, triggering concerns over metal demand. Moreover, China Household Finance Survey prepared by Southwestern University of Finance and Economics showed housing vacancy rate in China hit 22.4% in 2013, up 1.8 percentage points from 2011, adding to bearishness towards base metals markets. Investors remained cautious due to Qingdao’s investigation into metal financing, leaving trades in check.
LME three-month copper prices remained below USD 6,700/mt last week, testing a low of USD 6,654/mt before finishing at USD 6,673/mt, down USD 23/mt.
SHFE August-delivery copper started Wednesday’s night session at RMB 47,550/mt with price changes rarely exceeding RMB 250/mt. Prices for the most active contract met resistance at RMB 47,780/mt, and closed out at RMB 47,650/mt, down RMB 30/mt. Traded volumes for the most active copper contract were around 100,000 lots, while positions dropped 2,332 lots.
On Thursday, SHFE 1408 copper contract prices are expected to move between RMB 47,300-47,800/mt. Spot copper may be offered at premiums of RMB 20-120/mt.