SHANGHAI, Jun. 19 (SMM) – On Wednesday, LME three-month copper hit a high of USD 6,744/mt before closing at USD 6,718/mt, with positions plunging 14,838 lots. Later, the US Fed announced to cut its bond buying program another USD 10 billion to USD 35 billion per month. Fed Chairwoman Janet Yellen’s remarks on economy and job market following the policy meeting were welcomed by the market, allowing US stock prices to rise further, with S&P 500 hitting a new high. The US dollar weakened.
The August copper on SHFE followed LME copper price trends during night trading Wednesday, touching RMB 48,240/mt before closing up RMB 20/mt at RMB 48,190/mt. Traded volumes for the most active copper contract fell to about 40,000 lots, while positions were little changed.
On June 19, SHFE 1408 copper contract prices are expected to move between RMB 48,000-48,500/mt. Spot copper may be offered at premiums of RMB 400-550/mt against SHFE 1407 copper contract prices.