SHANGHAI, Jun. 13 (SMM) – Concerns over China’s metal demand and weak US economic data reported Thursday weighed market on. The US retail sales grew more slowly than expected in May, and last week’s initial jobless claims also were above forecast and previous figures. In addition, the unrest in Iraq which pushed up crude oil prices but dragged down airline shares, causing the US stock prices to fall. LME copper prices were still affected by Qingdao’s probe into fraudulent financing and closed down USD 56/mt at USD 6,618/mt. The cash-to-three-month backwardation is now USD 24/mt.
The August copper contract on SHFE started Thursday’s night session at RMB 47,500/mt and ended at RMB 47,370/mt, down RMB 260/mt. Traded volumes for the most active copper contract were around 150,000 lots, and positions increased 934 lots.
On Friday, SHFE 1408 copper contract prices are expected to move between RMB 47,100-47,500/mt. Spot copper may be offered at premiums of RMB 200-300/mt as downstream buyers will increase purchases before the weekend.