SHANGHAI, Jun. 24 (SMM) – On Monday, China’s economic data were reported optimistic, and economic indicators from the US also brightened. Preliminary US PMI for June hit a high never seen since May 2010, with output index up for a third consecutive month, and indices tracking orders and employment also up. US pending home sales in May rose for a second month and hit a 7-month high.
However, reports that central banks at major economies may cut holdings in long-term bonds hedge risks arising from higher interest rate prevented US stock from rising. LME copper prices touched a high of USD 6,900/mt before closing at USD 6,873/mt, up USD 54/mt.
The August-delivery copper on SHFE started at RMB 49,560/mt for Monday’s night trading. The prices found support at RMB 49,480/mt with resistance at RMB 49,690/mt, and finished the session at RMB 49,580/mt, up RMB 300/mt. Traded volumes for the most active SHFE copper contract were around 70,000 lots, while positions increased by 1,746 lots.
On June 24, SHFE 1408 copper contract prices are expected to move between RMB 49,300-49,800/mt. Spot copper may be offered at premiums of RMB 450-650/mt against SHFE 1407 copper contract prices.