SHANGHAI, Jun. 18 (SMM) – The economic sentiment indicators for euro zone and Germany were reported poor on Tuesday, but European automobile industry presented continued recovery in May, with auto sales rising for a ninth consecutive month.
The US housing starts and building permits for May both fell short of forecast, implying slow recovery in housing market. The US housing starts fell to 1 million, lower than the 1.03 million expected, and the housing permits also dropped to 991,000, below the 1.05 forecast. Investors were pondering the Iraq upheaval, European auto sales, and above-expected US inflation, and waiting for Fed’s policy meeting result. European and US shares eked out slight rises.
LME three-month copper fell after the release of US housing data, but regains some losses at the tail of trading and closed at USD 6,719/mt.
The August copper on SHFE opened lower for night trading Tuesday but soon rose above RMB 48,000/mt and closed at a session high of RMB 48,200/mt, up RMB 60/mt. Traded volumes for the most active copper contract remained low at around 60,000 lots, while positions continued to rise by 1,756 lots.
On June 18, SHFE 1408 copper contract prices are expected to move between RMB 47,800-48,300/mt. Spot copper may be offered at premiums of RMB 380-550/mt against SHFE 1407 copper contract prices.