SHANGHAI, Jun. 17 (SMM) – On Monday, market was still under the influence of an extension of China’s “targeted RRR cut”. The US economic data also proved upbeat, with both May factory output and June NAHB housing index exceeding expectations. US stock prices thus extended gains. However, investors remained cautious due to the upcoming Fed policy meeting and geopolitical crisis. LME three-month copper failed to break through USD 6,720/mt and closed at USD 6,685/mt, up USD 43/mt.
The August copper on SHFE hovered at RMB 48,000/mt at Monday’s night trading and closed the session at RMB 48,060/mt, up RMB 130/mt. Traded volumes for the most active copper contract remained depressed at around 60,000 lots during the night session, while positions increased 1,598 lots.
On Tuesday, SHFE 1408 copper contract prices are expected to move between RMB 47,700-48,200/mt. Spot copper may be offered at premiums of RMB 350-450/mt against SHFE 1407 copper contract prices.