SHANGHAI, Jun. 20 (SMM) – Chinese Premier Li Keqiang said during his visit to Athens that China’s economy is expected to grow 7.5% this year, easing market concerns over a slowdown. Meanwhile, the US President Barack Obama said the country is prepared to launch military action against Iraq if necessary and the US is ready to send as many as 300 military advisers to Iraq. Fears over an escalation of Iraq tension caused precious metals to surge, with gold prices up 3.35%. Meanwhile, the US economic data proved upbeat. The Philly Fed manufacturing index exceeded forecast in June, and last week’s initial jobless claims hit a nearly seven-year low. The US stock prices were mixed, and the US dollar index fell to a three-week low. Base metals rallied as a result. LME three-month copper prices touched a high of USD 6,745/mt and closed at USD 6,734/mt, remaining below the 60-day moving average.
The August-delivery copper on SHFE started higher at RMB 48,120/mt for night trading Thursday and moved narrowly before ending the session at RMB 48,270/mt, up RMB 190/mt. Traded volumes for the most active SHFE copper contract were around 60,000 lots, while positions shrank by 1,604 lots.
On June 20, SHFE 1408 copper contract prices are expected to move between RMB 48,000-48,400/mt. Spot copper may be offered at premiums of RMB 400-600/mt against SHFE 1407 copper contract prices with cargo holders still holding prices firm.